June 10 (Bloomberg) -- Soybeans fell the most in a week on speculation that U.S. growers will plant more of the crop than the government forecast as weather delays force some farmers to switch from corn.

Rainfall across the Midwest was as much as four times normal during the past 60 days, according to National Weather Service data. Corn planted after June 5 in parts of the Midwest will yield less, while the soybean growing season starts later. Drier, warmer weather is expected after June 16, government forecasters said today.

``It's not too late to plant soybeans,'' said Jerry Gidel, a market analyst for North American Risk Management Services in Chicago. ``The drier weather may provide farmers with an opportunity to plant some soybeans.''

Soybean futures for July delivery fell 15.25 cents, or 1.1 percent, to $14.3675 a bushel at 12:24 p.m. on the Chicago Board of Trade, after paring gains of as much as 0.9 percent. A close at that price would be the largest drop since May 29.

Most-active futures surged 77 percent in the past year before today, reaching a record $15.8625 on March 3.

More than 2 million acres of cornfields remain to be planted, state crop-progress reports showed yesterday, Gidel said. Farmers are likely to switch a majority of those acres to soybeans, Gidel said.

Midwest fields received as much as 12 inches (30 centimeters) of rain in the past week, according to Weather Service data. Some areas may get an additional 5 inches in the next four days, increasing flooding and reducing the soil's nitrogen content, which may limit plant growth.

Planting Progress

The yield potential for corn declines unless seeds are sown before the middle of May in the Midwest, because plants need to pollinate before the arrival of hot summer weather. As of June 1, 95 percent of the corn crop was planted, down from 98 percent on average for that date in the previous five years, the U.S. Department of Agriculture said last week.

Soybeans can be planted until the end of June without limiting yields. As of June 8, about 77 percent of soybean fields were seeded, the USDA said yesterday.

Soybeans also fell after the dollar climbed for a second straight day, reducing the appeal of commodities as an alternative investment, said Dan Cekander, senior grain analyst for NewEdge USA LLC in Chicago. Gold fell the most in 10 weeks as investors reduced bets on inflation.

The dollar reached a three-month high against the yen and rose as much as 1.2 percent against the euro after Federal Reserve Chairman Ben S. Bernanke said risks to the U.S. economy receded in the past month, spurring speculation that interest rates will rise.

``Washington is taking steps to suppress inflation,'' Cekander said. ``Soybeans are caught up in the macro-economic selling tied to rising interest rates and a stronger dollar.''

Soybeans are the second-biggest U.S. crop, valued at $26.8 billion last year, government figures show. Corn is the biggest, with a 2007 value of $52.1 billion.

-- Editors: Ted Bunker, Steve Stroth.

To contact the reporter on this story: Jeff Wilson in Chicago at jwilson29@bloomberg.net

Last Updated: June 10, 2008 13:30 EDT