Soybeans Drop as Rains Set to Help Revive Crops in U.S. Midwest
Soybeans declined to the lowest level in more than a week as rains forecast in parts of the Midwest may help revive parched crops in the largest U.S. growing region. Corn and wheat also fell.
Soybeans for November delivery lost as much as 3.3 percent to $15.7575 a bushel, the lowest price on the Chicago Board of Trade since July 27. They traded at $15.92 at 2:24 p.m. Singapore time.
A few areas in the northwestern parts of the Midwest may see near normal amounts of rainfall in the 10 days from Aug. 3, Telvent DTN Inc. said that day.
“The forecast rains in the U.S. Midwest this week are putting downward pressure on prices,” Toshimitsu Kawanabe, an analyst at broker Central Shoji Co., said by phone from Tokyo today. “Investors are also awaiting the monthly USDA report,” he said, referring to the agricultural supply and demand estimate due on Aug. 10 in Washington.
Crushers in China, the world’s largest importer, will actively participate in sales of government stockpiles of soybeans, including the 400,000 metric tons set for auction on Aug. 16, state-researcher Grain.gov.cn said. Processors are turning to the government for cheaper supply, as domestic prices of products crushed from soybeans, including the meal for animal feeds and cooking oil, failed to keep pace with import costs for the raw material, it said.
Imported soybeans cost about 5,300 yuan ($832) a ton, compared with the minimum price of 3,950 yuan a ton set for next week’s auction.
Corn for December delivery slipped as much as 2.3 percent to $7.8925 a bushel in Chicago before trading at $7.985. Wheat for December delivery slid 0.6 percent to $8.98 a bushel.
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