Stockpiles as of Sept. 1 were 141 million bushels, the USDA said today in a report. On Sept. 12, the agency estimated 125 million. Last week, 28 analysts surveyed by Bloomberg News projected 127 million, on average. A gauge of demand in the three months ended Aug. 31 fell 41 percent to 294 million bushels from a year earlier. The agency increased its estimate of 2012 output by 18.6 million bushels.
“Supplies are a little bigger than people expected,” Randy Mittelstaedt, the director of research at R.J. O’Brien & Associates in Chicago, said in a telephone interview. “Without a bullish surprise, the market is under pressure with the harvest coming very quickly. Yields collected so far have been better than expected, and now we’ll wait to see what happens to the crops that were planted late because of the flooding.”
Soybean futures for November delivery fell 2.6 percent to $12.86 a bushel at 12:13 p.m. on the Chicago Board of Trade. A close at that price would mark the biggest drop for a most-active contract since July 25. Earlier, the oilseed touched $12.84, the lowest since Aug. 22.
Trading was 45 percent above the average in the past 100 days for this time, according to data compiled by Bloomberg. Through Sept. 27, the oilseed dropped 6.4 percent this year.
Reserves held on farms were 39.55 million bushels, compared with 38.3 million a year earlier, the USDA said today. Supplies stored in commercial grain silos fell to 101 million from 131.1 million.
Earlier this month, the agency said this year’s harvest will be 3.149 billion bushels. The U.S. is the world’s biggest grower.
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