Feb. 8 (Bloomberg) -- Soybean futures fell the most in seven weeks after the U.S. government said bigger crops in South America will boost global inventories before the Northern Hemisphere harvests. Corn rose.
World soybean production will total a record 269.5 million metric tons, more than the 269.41 million forecast in January, and up 13 percent from a year ago, the U.S. Department of Agriculture said today in a report. Combined production in Brazil and Argentina will rise 28 percent to a record 136.5 million, the agency said. Inventories on Oct. 1 were estimated at 60.1 million tons, up from 55.25 million a year earlier.
“There is no shortage of soybeans,” Dale Durchholz, the senior market analyst at AgriVisor LLC in Bloomington, Illinois said in a telephone interview. “‘People are less inclined to buy with bigger crops projected in South America and rain in the forecasts for the next week.”
Soybean futures for March delivery tumbled 2 percent to $14.5675 a bushel at 1:02 p.m. on the Chicago Board of Trade. A close at that price would mark the biggest drop for a most-active contract since Dec. 19. The oilseed headed for a weekly decline, snapping a four-week rally.
Through yesterday, futures gained 21 percent in the past 12 months after the most-severe drought in 70 years cut U.S. inventories to a nine-year low.
Corn futures for March delivery rose less than 0.1 percent to $7.11 bushel. The price dropped in the previous five sessions, the longest slump in eight weeks.
U.S. stockpiles before the next harvest will be 5 percent larger than forecast a month ago, the government said today. Worldwide inventories on Oct. 1 will be 118.04 million tons, up from 115.99 million predicted a month earlier.
Corn is the biggest crop, valued at $76.5 billion in 2011, followed by soybeans at $35.8 billion, government figures show.
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