South African Soybeans Decline on Early U.S. Harvest
South African soybeans fell for a second day, tracking a decline in international prices as an early U.S. harvest and improving weather conditions in South America, the largest growing region, eased supply concerns.
Soybeans for delivery in December, the most active contract, dropped for a second day, losing 1.2 percent to 5,325 rand ($632) a metric ton by the close on the South African Futures Exchange. This is the lowest for a most active contract since Sept. 28.
Soybeans fell as much as 1.7 percent to the lowest since July 5 on the Chicago Board of Trade. Parts of Brazil, northern Argentina and Uruguay will have moderate to heavy rains this week, maintaining soil moisture, Accuweather.com said in a report yesterday. In the U.S., the largest grower last year, about 41 percent of the crop was harvested as of Sept. 30, compared with 15 percent a year earlier, the Department of Agriculture said Oct. 1.
“People now think there will be more soybeans than expected and that has pushed prices down,” Benjamin Swanepoel, a trader at Trademar Futures (Pty) Ltd., said by phone in Johannesburg. “Rainfall in South America is also helping the crop as yields are better than expected. There is less demand for soybeans in America and this is also dropping prices today,” Swanepoel said.
South African white-corn futures surged 1.9 percent to 2,474 rand a ton, the highest since Sept. 17. The yellow variety rose 1.1 percent to 2,475 rand.
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