Soybeans were little changed after falling to near a one-month low earlier amid speculation dry weather in the U.S. Midwest will aid maturing crops and harvesting, after recent rains slowed a drop in crop conditions.
The Midwest is forecast to remain mostly dry in the next three days, according to World Ag Weather. Drier weather this week will favor harvests, with no significant cold-weather threat, DTN wrote in a Sept. 20 report. The U.S. Department of Agriculture will publish its weekly update on crop conditions later today.
“Last week’s rains are expected to have improved late-planted soybeans,” Paul Georgy, the president of broker Allendale Inc., wrote in a market comment. “The crop conditions report this afternoon could show an improvement.”
Soybeans for November delivery slipped less than 0.1 percent to $13.1475 a bushel by 7:15 a.m. on the Chicago Board of Trade, after earlier falling to $13.0775, the lowest level since Aug. 23. Futures dropped 4.8 percent last week, and have declined in six out of seven sessions.
“The U.S. soybean harvest has commenced and the early yield results seem to be holding up better than expected,” Luke Mathews, a commodity strategist at Commonwealth Bank of Australia, said in a report today. “The oilseed market will be torn between mounting U.S. harvest pressure, changing production estimates and strong export sales results.”
Soybeans rallied for six straight weeks through Sept. 13 as crop conditions in the Midwest deteriorated amid hot, dry weather, U.S. Department of Agriculture data show.
The USDA cut its domestic harvest estimate to 3.149 billion bushels this month, still 4.4 percent more than last year’s drought-curbed harvest. Soybean output in India is seen at 11.6 million to 11.8 million metric tons in 2013-14, from 10.6 million tons a year earlier, Vijay Data, president of the Solvent Extractors’ Association of India, said Sept. 20.
Corn for December delivery retreated 0.6 percent to $4.4825 a bushel, while wheat for delivery in December rose 0.1 percent to $6.4675 a bushel. Milling wheat for November delivery traded on NYSE Liffe in Paris was unchanged at 185.75 euros ($251) a ton.
“Grain futures are slightly lower as weather conditions improve for harvest this week,” Georgy wrote.