Soybeans fell for a second day on speculation that rain will improve the yield potential of crops in Brazil, reducing demand for supplies from the U.S., the world’s biggest grower and exporter. Corn advanced.
As much as 1.5 inches (3.8 centimeters) of rain fell in the past 24 hours, boosting soil moisture for developing crops in northern and northeastern Brazil, World Weather Inc. said in a report to clients today. Drier weather expected over the next 10 days in southern Brazil is unlikely to stress reproducing crops, after above-normal rainfall during the prior two months. Argentina is headed for the third week of dry weather that may damage corn, the forecaster said.
“Weather is generally looking favorable for soybean production, and that means overseas buyers will turn away from the U.S,” Don Roose, the president of U.S. Commodities Inc. in West Des Moines, Iowa, said in a telephone interview. “Corn is more at risk of yield losses in Argentina.”
Soybean futures for March delivery dropped 0.1 percent to close at $14.2925 a bushel at 2 p.m. on the Chicago Board of Trade. The oilseed still gained 4.1 percent for the week, the most since August, after the government said Jan. 11 that U.S. inventories fell to a nine-year low. Yesterday, the most-active contract touched $14.48, the highest since Dec. 19.
Corn futures for March delivery rose 0.4 percent to $7.275 a bushel on the CBOT, capping the ninth gain in 10 sessions. The price gained 2.6 percent for the week, after touching a five-week high of $7.35 on Jan. 16.
The exchange will be closed Jan. 21 for Martin Luther King Jr. holiday. Trading will resume at 7 p.m. that day in Chicago.
In the U.S., corn is the biggest crop, valued at $76.5 billion in 2011, followed by soybeans at $35.8 billion, government figures show.