Soybeans Drop as Brazil’s Harvest Seen Proceeding Amid Rainfall

Soybeans fell in Chicago, paring the first monthly gain since August, on speculation rain in leading global exporter Brazil will be too light to disrupt the harvest.

The states of Mato Grosso, southern Goias and western Minas Gerais may see scattered moderate to locally heavy rain today and tomorrow, while northern and eastern areas may be somewhat drier during the weekend, forecaster DTN said today. About 7.1 percent of soybeans were harvested in Mato Grosso, the biggest producing state, against 5.8 percent a year earlier, researcher Instituto Mato-Grossense de Economia Agropecuaria said Jan. 29.

“Rain in Brazil has been delaying the harvest of the bean crop, but the delay appears slight,” Arnaud Saulais, a broker at Starsupply Commodity Brokers in Nyon, Switzerland, said in a note today.

Soybeans for delivery in March dropped 0.7 percent to $14.685 a bushel at 7:21 a.m. on the Chicago Board of Trade after four sessions of advances. The oilseed is up 4.2 percent this month.

Corn for delivery in March slid 0.2 percent to $7.3875 a bushel. The grain touched $7.445, the highest level for the most-active contract since Dec. 7, on speculation hot, dry weather in Argentina would harm yields. Prices are up 5.8 percent in January.

In Argentina, showers in the next two days may ease some dry weather stress, while the country may have high temperatures early next week, DTN said. Rainfall since yesterday in the provinces of Cordoba and southern Santa Fe was as much as 0.75 inch (1.9 centimeters).

Wheat for delivery in March declined 0.4 percent to $7.8375 a bushel, leaving the grain up 0.7 percent this month, set for the first advance since September. In Paris, milling wheat for March delivery was unchanged at 248 euros ($336) a metric ton on NYSE Liffe, little changed for the month.