Chicago Board of Trade soybean futures rose sharply Wednesday as worries intensified regarding drought in South America’s soybean-producing areas. The unfavorable weather is raising concerns about potential yield losses in Argentina and Brazil, two of the world’s largest soybean exporters.

The most active March soybean contract climbed 17 cents to $7.03 1/2 a bushel. Other contracts also experienced significant gains, reflecting the market’s apprehension about the developing situation.

Analysts are closely monitoring weather patterns in South America. Prolonged dryness could substantially reduce soybean production, leading to higher prices and increased demand for U.S. soybeans. Some forecasts predict continued dry conditions in the coming weeks, further fueling market anxieties.

The potential impact on global soybean supplies remains uncertain, but the situation underscores the vulnerability of agricultural markets to weather-related disruptions. Traders will be paying close attention to upcoming crop reports and weather updates to gauge the full extent of the drought’s impact.