Soybeans Drop on Rebounding U.S. Supplies; Corn Falls

Soybean futures had the biggest drop in almost three weeks on mounting speculation that the U.S., the world’s second-biggest grower, will produce the most ever this year. Corn fell, and wheat climbed.

Soybean output will be a record 3.39 billion bushels in the season that starts Sept. 1, 12 percent more than a year earlier, when crops were hurt by drought, the U.S. Department of Agriculture said yesterday. Analysts in a Bloomberg survey expected a forecast of 3.371 billion. Inventories may more than double from a year earlier to 265 million bushels, the USDA said.

“Forecasts for a significant build in 2013-14 U.S. soybean carryout could put November soybean futures in a downtrend,” Dan Cekander, the director of grain-market analysis at Newedge USA LLC, said in a report. “Forecasts for five to six days of drier weather next week across the Corn Belt could allow increased U.S. soybean planting.”

Soybean futures for November delivery dropped 1 percent to settle at $13.005 a bushel at 1:15 p.m. on the Chicago Board of Trade, the biggest decline for a most-active contract since May 24.

Corn futures for December delivery fell 0.4 percent to $5.3525 a bushel. Earlier, the price touched $5.29, the lowest since May 24. The USDA forecast for domestic production was larger than analysts forecast.

Wheat futures for July delivery rose 0.4 percent to $6.855 a bushel. Earlier, the price touched $6.75, the lowest since May 21.

Corn is the biggest U.S. crop, followed by soybeans, hay and wheat, USDA data show. Brazil is the top oilseed producer.

Before it's here, it's on the Bloomberg Terminal.