Soybeans reached a six-week low in Chicago after government reports showed improving prospects for the U.S. harvest and bigger-than-expected inventories. Corn fell to the lowest level since 2010.
Fifty-three percent of soybeans were in good or excellent condition as of Sept. 29, up from 50 percent a week earlier that got the top ratings, the U.S. Department of Agriculture said yesterday. Harvesting is about 11 percent complete. The USDA said separately U.S. soybean inventories totaled 141 million bushels on Sept. 1, more than analysts expected and bigger than the 125 million bushels projected on Sept. 12.
“Reports for the grains yesterday were quite surprising,” economist Dennis Gartman said in his daily Gartman Letter. “Beans are again under pressure.”
Soybeans for delivery in November slid 0.8 percent to $12.7275 a bushel by 6:46 a.m. on the Chicago Board of Trade. The oilseed touched $12.72, the lowest for a most-active contract since Aug. 16. Prices tumbled 2.8 percent yesterday and are down 9.7 percent this year on the expectation that U.S. production would recover from drought last year.
Corn for delivery in December dropped 0.3 percent to the day’s low of $4.40 a bushel, the lowest for most-active futures since Sept. 1, 2010. Stockpiles in the U.S., the world’s top grower of the grain, were 824 million bushels on Sept. 1, more than the 661 million estimated earlier this month, the USDA said. Analysts in a Bloomberg survey before the report expected 694 million bushels, on average.
The data will probably push corn and soybeans lower and widen wheat’s premium to corn, Damien Courvalin, a Goldman Sachs Group Inc. analyst, said in a report dated yesterday.
Wheat for delivery in December fell 0.4 percent to $6.7575 a bushel, extending yesterday’s 0.7 percent loss. Stockpiles were 12 percent smaller than a year earlier at 1.86 billion bushels, the USDA said, less than analysts expected.
Total U.S. wheat production will be 2.13 billion bushels in the marketing year begun June 1, down from 2.27 billion harvested a year earlier, the USDA said yesterday. Analysts surveyed by Bloomberg expected supplies to be smaller at 2.02 billion bushels.
Milling wheat for delivery in November slid 0.9 percent to 191.50 euros ($259.36) a metric ton on NYSE Liffe in Paris.
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