Soybean Futures Advance

Soybean futures prices advanced strongly Monday because of disappointing rains over the weekend. Grain futures also were higher on the Chicago Board of Trade, partly in sympathy with the improved bean prices. “The rains were not as widespread as forecast,” said Bob Lekberg, an analyst with Shearson Lehman Bros. “Only about 20% of the Midwest got meaningful amounts.” The crucial period for soybean development is still ahead--mostly in Auguest--and poor weather conditions could cause some crop damage. The forecasts for most of the soybean growing areas also are on the dry side, Lekberg added.

Wheat futures continue to feed on the concept that the government’s export bonus subsidy program could be extended to the Soviet Union. The Administration has denied that it is actively considering this, but Senate Majority Leader Robert Dole (R-Kan.), was quoted Monday as saying the idea is still alive.

Wheat settled 1/2 cent to 3 1/2 cents higher, with the contract for delivery in July at $2.65 a bushel; corn was 2 cents lower to 3 cents higher, with July at $2.11 1/2 a bushel; oats were 1 cent lower to cent higher, with July at $1.05 a bushel, and soybeans were 6 3/4 cents to 11 1/2 cents higher with July at $5.51 1/2 a bushel.