Soybeans Drop on Speculation U.S. Harvest May Exceed Estimates
Soybeans fell in Chicago on speculation a government report this week will show larger U.S. production than previously estimated. Corn slid and wheat rose.
The U.S. soybean harvest may be 2.76 billion bushels, 4.9 percent more than estimated in September, according to a Bloomberg News survey of analysts before the U.S. Department of Agriculture updates its projections Oct. 11. Corn output may be 10.62 billion bushels, less than last month’s forecast of 10.73 billion, analysts said. Memphis-based researcher Informa Economics pegged soybean output at 2.86 billion bushels and corn at 11.15 billion, above analysts’ consensus for both crops.
“Informa’s figures were a very real and very bearish surprise to the market and set the stage for a very bearish report from the USDA,” economist Dennis Gartman wrote today in his daily Gartman Letter.
Soybeans for November delivery fell 0.6 percent to $15.4175 a bushel by 7:03 a.m. on the Chicago Board of Trade. The oilseed is down 14 percent since Sept. 4, when concern that U.S. drought would hurt yields sent prices to a record $17.89 a bushel. Corn for December delivery retreated 0.8 percent to $7.4175 a bushel.
Wheat for December delivery increased 0.2 percent to $8.5925 a bushel, rebounding from a 5 percent slide last week. In Paris, November-delivery milling wheat fell 0.2 percent to 258.50 euros ($334.96) a metric ton on NYSE Liffe.
Low temperatures may slow germination and development of recently planted wheat in the central and southern U.S. plains, Telvent DTN Inc. said in a report today. Dry weather will cut soil moisture in the next five to six days, it said.
Demand for supplies from the U.S., the world’s biggest exporter, may also pick up after last week’s drop, said Lynette Tan, an analyst at Phillip Futures Pte in Singapore. U.S. exporters sold 307,031 tons of wheat in the week to Sept. 27 for delivery in this marketing year, down from 425,993 tons a week earlier, the USDA said Oct. 4.
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