Commodities : Tuesday, Jan. 7, 1986 : Soybean Futures Advance

Soybean futures prices advanced strongly on the Chicago Board of Trade Tuesday with continuing concern about the condition of the crop in moisture-starved Brazil.

Reports that a private forecaster had substantially reduced his estimate for Brazil’s harvest combined with weather forecasts showing little rain in the next few days drove bean futures prices higher. Agriculture Secretary John Block’s resignation appeared to give a little extra boost to bean and grain prices, said Bob Lekberg, an analyst in Chicago with Shearson Lehman Brothers.

Corn futures rallied from recent declines under “pretty good commercial buying,” Lekberg said. There have been large amounts of corn put under government loan programs, essentially eliminating them from the market. “There are 1.9 billion bushels and climbing under loan,” he said, “and farmers know that’s their hole card and so they’re not doing much selling.”

Wheat was stronger on commercial buying tied to export business, analysts said.

Coffee futures prices advanced on most contracts by the 6-cent a pound limit set by the Coffee, Sugar and Cocoa Exchange, reflecting trader disdain for a crop report out of Brazil.