Soybeans Slump to 1-Month Low on U.S. Dry Weather; Grains Rise
Soybeans dropped to a one-month low on speculation that dry weather in the U.S. Midwest will help maturing crops rebound after conditions deteriorated. Corn and wheat rose.
The weather will be mostly dry and warm over the next two weeks, T-Storm Weather LLC said in a note to clients. Soybean-crop conditions deteriorated for five straight weeks and are the worst so far this season. About 50 percent of fields were in good or excellent condition as of Sept. 15, compared with 64 percent on Aug. 11. The U.S. Department of Agriculture will publish its weekly update on crop ratings later today.
“The weather, at least in the extended outlook, looks warmer,” Mark Schultz, the chief analyst for Northstar Commodity Investment Co., said in a telephone interview from Minneapolis. “That means more harvest will pick up. Most of these beans are going to make it to maturity.”
Soybean futures for November delivery slid 0.6 percent to settle at $13.0775 a bushel at 1:15 p.m. on the Chicago Board of Trade, after falling to $13.055, the lowest since Aug. 23. Prices dropped 4.8 percent last week.
“The U.S. soybean harvest has commenced, and the early yield results seem to be holding up better than expected,” Luke Mathews, a commodity strategist at Commonwealth Bank of Australia (CBA), said in a report today. “The oilseed market will be torn between mounting U.S. harvest pressure, changing production estimates and strong export-sales results.”
Soybeans rallied for six weeks through Sept. 13 as crop conditions in the Midwest worsened, government data show.
Corn futures for December delivery rose 0.5 percent to close at $4.5325 a bushel in Chicago. Prices slumped 1.7 percent last week, the third straight decline.
Wheat futures for delivery in December climbed 1.1 percent to $6.535 a bushel on the CBOT.
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