Soybeans Fall With Corn to Four-Year Lows on Bumper CropLydia Mulvany
Soybean and corn futures extended declines to the lowest in more than four years as harvests accelerated in the U.S., the world’s top grower. Wheat rose after falling to the cheapest since 2010.
Soybean and corn harvests will climb to records this year, the U.S. Department of Agriculture said on Sept. 11. As of yesterday, farmers probably collected 11 percent of the corn crop, up from 4 percent a week earlier, and 5 percent of soybeans, according to a Bloomberg News survey. The agency will update its weekly crop progress report today.
“There’s more production than what we need, and until something changes the perception that we’re going to increase ending stocks for both U.S. and world inventories of grains, there’s not a lot of hope for new buyers to come in,” William Fordham, the president of C & S Grain Market Consulting in Ohio, Illinois, said in a telephone interview. “Eventually, those prices will create new demand, but how low is enough to create that new demand, we don’t know yet.”
Soybean futures for November delivery dropped 2 percent to close at $9.3825 a bushel on the Chicago Board of Trade. Earlier, the price touched $9.3425, the lowest for a most-active contract since July 8, 2010.
Corn futures for December delivery fell 0.4 percent to $3.3025 a bushel. The grain touched $3.2675, the lowest since June 30, 2010.
Midwest rain next week will slow the harvest briefly, and “freeze risks remain low through mid-October,” Bethesda, Maryland-based Commodity Weather Group said in a report. The weather will be mostly dry and warm, aiding field work.
Wheat futures for December delivery rose 0.5 percent to $4.7675 a bushel. The price touched $4.695, the lowest since June 30, 2010.