Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Soybeans Jump Most in Three Weeks on Crop Forecast; Corn Falls

Sept. 12 (Bloomberg) -- Soybean futures jumped the most in three weeks after the U.S. said a lingering Midwest drought will cut output more than estimated. Corn fell to a seven-week low on signs that the harvest will shrink less than analysts forecast.

Domestic soybean production will drop to 2.634 billion bushels this year, the smallest crop in nine years and down 14 percent from 2011, the U.S. Department of Agriculture said today in a report. The average estimate of 34 analysts surveyed by Bloomberg was 2.659 billion. Prices for farmers will average a record $16 a bushel in the year that began Sept. 1, up 29 percent from a year earlier, the USDA said.

“Soybean supplies will be tight this year, and prices will stay elevated to slow demand,” Mark Schultz, the chief analyst at Northstar Commodity Investment Co. in Minneapolis, said in a telephone interview. “We have yet to see any evidence of slowing demand either in the U.S. or from overseas buyers.”

Soybean futures for November delivery rose 2.6 percent to close at $17.4575 a bushel at 2 p.m. on the Chicago Board of Trade, the biggest gain for a most-active contract since Aug. 21. The price rose for the first time since Sept. 4, when the oilseed reached a record $17.89.

Demand for U.S. soybeans is forecast to drop 15 percent this year, the USDA said. Export sales, which are already at a record for the start of the marketing season, will fall 22 percent to the lowest in seven years, while domestic processing is projected to decline to the lowest since 1997, USDA data show.

Corn Falls

Corn futures for December delivery fell 1 percent to settle at $7.695 a bushel, the third straight decline. Earlier, the price touched $7.5925, the lowest since July 24. The grain, down 9.4 percent from a record $8.49 on Aug. 10, has climbed 19 percent this year.

U.S. production will total 10.727 billion bushels, the smallest crop in six years and down 13 percent from 12.358 billion in 2011, the USDA said today. The average prediction of 35 analysts surveyed by Bloomberg was for 10.42 billion. Supplies on Aug. 31 will be greater than analyst estimates.

“The corn crop is a little larger than people expected,” said Don Roose, the president of U.S. Commodities Inc. in West Des Moines, Iowa. “Prices were high enough earlier this year to slow demand,” as livestock producers sought cheaper feed alternatives and began to shrink herds, Roose said.

Corn is the biggest U.S. crop, valued at $76.5 billion in 2011, followed by soybeans at $35.8 billion, government figures show.

To contact the reporter on this story: Jeff Wilson in Chicago at jwilson29@bloomberg.net

To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.