Soybeans Drop From 10-Week High on Farmer Sales; Wheat DeclinesJeff Wilson
Soybeans fell from a 10-week high on speculation that higher cash prices prompted U.S. farmers to increase sales and as rains boosted crops in South America. Wheat also declined, while corn was unchanged.
On Nov. 29, soybeans in the cash market fetched $12.9826 a bushel on average, the highest since Sept. 20, data from the Minneapolis Grain Exchange show. Prices gained 5.2 percent in November as U.S. export sales for this season rose 35 percent from a year earlier. Rain during the next two weeks in Brazil and Paraguay will maintain favorable soil moisture for crop development, T-Storm Weather LLC said in a report today.
“The early rally in prices probably triggered increased sales by farmers who have been looking to sell cash beans above $13,” Tim Emslie, the research manager for CHS Hedging Inc. in Inver Grove Heights, Minnesota said in a telephone interview. “South America crops are in good condition, so there is little issue at this time to support a weather premium.”
Soybean futures for January delivery dropped 1.1 percent to close at $13.2125 a bushel at 1:15 p.m. on the Chicago Board of Trade, after touching $13.46, the highest for a most-active contract since Sept. 19. Most-active futures have dropped 6.3 percent this year on a U.S. government forecast for record global production of 283.5 million tons.
Brazil, the world’s top exporter, may harvest 88 million tons, 7.3 percent more than the past season’s record crop, according to the U.S. Department of Agriculture. Argentina, the biggest shipper of soy-based animal feed and cooking oil, may harvest a record 57.5 million tons in the 12 months that start April 1, up from 49.3 million harvested this year, the USDA’s Foreign Agricultural Services said in a report last month.
Wheat futures for March delivery fell 1 percent to $6.6175 a bushel in Chicago, after touching $6.7475, the highest since Oct. 31.
Corn futures for March delivery were unchanged at $4.245 a bushel. The grain has dropped 39 percent this year as the USDA forecast the domestic harvest will climb 30 percent to a record.