Soybeans Decline as Brazil’s Output Rises to Record
Soybean prices fell for the second straight day after Brazil said that production will rise to a record this year, topping the U.S. as the world’s largest grower. Corn futures rose.
Conab, Brazil’s forecasting agency, said today in a report that soybean output will rise 25 percent to 82.7 million metric tons in 2013 from a year earlier. U.S. farmers collected 80.46 million tons in 2012. Conab said exports will rise to 36.4 million tons from 32.5 million last year.
“The market is staring at a record crop in Brazil and adjusting to the outlook for slowing demand for U.S. soybeans,” Brian Grete, the senior market analyst at the Professional Farmers of America newsletter in Cedar Falls, Iowa, said in a telephone interview. “All the focus is on improving global supplies.”
Soybean futures for March delivery slipped 0.1 percent to $13.8575 a bushel at 11:18 a.m. on the Chicago Board of Trade. Yesterday, the price dropped 0.1 percent. On Jan. 4, the oilseed touched $13.56, the lowest since June 19.
Corn futures for March delivery gained 0.5 percent to $6.925 a bushel. The price headed for the third straight gain, the longest rally since Nov. 27. The grain reached a record $8.49 on Aug. 10 after drought cut U.S. production to a six-year low.
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.
To contact the editor responsible for this story: Steve Stroth at firstname.lastname@example.org