Soybeans fell for the second time in three sessions in Chicago on speculation that rains will aid crop quality and ease threats from dry weather in the U.S., the world’s top grower. Corn declined, while wheat advanced.
Showers will increase this week over large swaths of the growing region, favoring soybean-pod and corn development, Commodity Weather Group said today in a report. Below-normal temperatures will help yields in drier areas, according to the Bethesda, Maryland-based forecaster.
“The month of July was abnormally cool, and the crop is so well ahead of normal,” Sue Martin, president of Webster City, Iowa-based Ag & Investment Services Inc., said in a telephone interview. “That’s perceived as excellent conditions. All of that is what’s weighing on the market.”
Soybean futures for November delivery retreated 1.3 percent to close at $10.6575 a bushel on the Chicago Board of Trade. Futures touched $10.54 yesterday, the lowest since October 2010. Prices have slumped 18 percent this year.
Seventy-one percent of soybeans in the main U.S. growing areas were in good or excellent condition as of Aug. 3, unchanged from the previous week and the highest for the date since 1994, based on a report from the U.S. Department of Agriculture released yesterday. About 73 percent of corn crops received the top ratings.
U.S. soybean production this year will rise to a record 3.865 billion bushels, more than the 3.8 billion estimated by the USDA last month, INTL FCStone Inc. said yesterday. The USDA will update forecasts Aug. 12.
Corn futures for delivery in December fell 0.5 percent to $3.6725 a bushel.
Global corn production will be 986.763 million metric tons in the 12 months that started July 1, compared with a July 3 estimate of 974.258 million and a harvest of 986.746 million a year earlier, Memphis, Tennessee-based researcher Informa Economics Inc. said today in report to clients.
Wheat futures for September delivery gained 1.6 percent to $5.525 a bushel in Chicago, a fifth straight gain and the longest rally since April 30.