Soybeans declined for the first time in four days as concerns that the Irish debt problem may spread to Spain and Portugal strengthened the dollar against the euro, eroding demand for commodities. Corn and wheat advanced. January-delivery soybeans dropped as much as 0.8 percent to $12.4475 a bushel in Chicago before trading at $12.50 at 11:54 a.m. Singapore time. The oilseed has gained 4 percent this week, the first weekly advance in three. “It’s a risk-aversion trade, as what’s happening in Portugal now is likely to strengthen the dollar,” said Jonathan Barratt, managing director of Commodity Broking Services Pty. “Any dip will be well supported in corn and soybeans because of weather concerns, and China will probably get back to the market,” he said. The dollar rose to a two-month high against the euro this week as Europe’s debt crisis boosted the appeal of the U.S. currency as a safe investment. The dollar strengthened to $1.3331 from $1.336 yesterday. Corn for March delivery gained as much as 0.3 percent to $5.555 a bushel before trading at $5.5525. The contract has advanced 3.8 percent this week, heading for a first weekly gain in three. March-delivery wheat gained as much as 0.6 percent to $6.895 a bushel in Chicago before trading at $6.8875. Concern over a shortage of good-quality grain across emerging economies is supporting gains in wheat, Barratt said. Dry weather in South America is likely to hurt production of corn and soybeans, he said. Canada Frost Wet weather early in the year and a late frost in Canada, the world’s second-biggest wheat exporter, are likely to damage crop quality. Harvesting of milling wheat, used to make bread and pasta, finished earlier this month, according to the Canadian Wheat Board. Dry weather this week will produce a two-month rainfall deficit of 7 inches (18 centimeters) across South America, according to T-Storm Weather. A La Nina weather event has reduced moisture, the forecaster said. The U.S. is the world’s biggest exporter of corn and soybeans, followed by Brazil and Argentina. Brazil soybean and corn farmers may face a drought similar to the one that damaged 13 percent of its grain and oilseed crops five years ago, said Expedito Rebello, head of research at the government’s Meteorology Institute, known as Inmet. The southern part of Brazil has received below-average rain since October because of a La Nina weather pattern, raising concern that crops being planted now will be damaged before next year’s harvest, Rebello said. Brazil is the world’s second- largest soybean shipper and third-largest corn exporter. To contact the reporter on this story: Supunnabul Suwannakij in Bangkok at ssuwannakij@bloomberg.net To contact the editors responsible for this story: James Poole at jpoole4@bloomberg.net

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