SOYBEANS AND THE LA NINA EFFECT

The trading week started with November soybean futures surging to 15-month highs due to a frost/freeze in northeast China and Canada, and above all, the dryness in South America due to La Nina. The impact of the China freeze was a bit overblown because nearly one third of their bean crop has been harvested and the remaining crop in the field is thought to be mature enough so that this would not have much impact on yields. However, the dryness in key soybean growing areas in Mato Grosso, Brazil cannot be overlooked. .......more detail