Commodities : Friday, Aug. 29, 1986 : Soybeans Sharply Higher

Soybean futures prices advanced strongly Friday on the mistaken belief that the Agriculture Department was about to announce a 1986 bean loan rate above the level the trade had been expecting.

The November delivery of beans gained 9 3/4 cents and settled at $4.79 1/2 a bushel. However, analysts said soybeans could lose all or most of the advance when the market reopens Tuesday because the loan rate came in at $4.77 a bushel, not the rumored $4.89 that had fueled trading the last two days.

In some other markets, platinum had another strong day, gaining $11.70 an ounce, and livestock and meat futures advanced substantially.

“All else being equal, (soybean futures) prices will be coming down Tuesday,” said Bob Lekberg, an analyst in Chicago with Shearson Lehman Bros. “The uncertainty over the rate has been hard on the market; the gossip (about the possible rate) has covered all possible options for the past week or so,” he said.

The $4.77 rate is 5% below last year’s $5.02 and the lowest allowed under the law. However, the effective rate after reductions dictated by the Gramm-Rudman budget-cutting measure would be $4.56.