Soybeans Drop Most in Week as Rain Aids U.S. Crop; Corn DeclinesJeff Wilson and Phoebe Sedgman
Soybeans fell the most in more than a week on speculation that Midwest rains will halt declining crop conditions in the U.S., the world’s largest grower. Corn dropped for a third day, and wheat slid.
Fields from North Dakota to Ohio got as much as 1 inch (2.5 centimeters) of rain over the past three days, National Weather Service data show. Showers will reach the southwestern Midwest through midweek, aiding a third of the soy crop, Commodity Weather Group said in a report. Crop conditions declined for four straight weeks, with 52 percent rated good or excellent on Sept. 8, down from 64 percent on Aug. 11, government data show.
“Forecasts for beneficial rain in the U.S. this week weighed on sentiment,” Luke Mathews, a commodity strategist at Commonwealth Bank of Australia, wrote in a note.
Soybean futures for delivery in November lost 2.4 percent to close at $13.4825 a bushel at 1:15 p.m. on the Chicago Board of Trade, capping the biggest drop since Sept. 4. Through last week, the oilseed advanced for six straight weeks as unusually dry, hot weather across the Midwest raised concern that yields will be less than forecast.
Global production of oilseeds including soybeans, canola and sunflower seeds will rise 4.8 percent this year to 495.1 million metric tons, boosting global inventories by 17 percent before next year’s harvest, the U.S. Department of Agriculture said on Sept. 12.
U.S. farmers will harvest 3.149 billion bushels this year, down from 3.255 billion estimated in August, the USDA said. Corn output will jump 28 percent to 13.843 billion from last year’s drought-reduced harvest, helping send global inventories to a 12-year high, the government said. The USDA will update its crop-condition report today.
“Global supplies are more than adequate,” Robert Utterback, the chief executive officer of Utterback Marketing Services in Lafayette, Indiana, said in a telephone interview. “The U.S. crop is looking better, and early yields are coming in above farmer expectations.”
Corn futures for delivery in December slid 0.5 percent to $4.565 a bushel in Chicago, after falling 2 percent last week.
Wheat futures for delivery in December fell less than 0.1 percent to $6.4125 a bushel on the CBOT. Prices lost 1 percent last week after rain boosted soil moisture for sowing of winter grains across the Grain Plains.