Soybeans Fall to Four-Year Low as Weather Buoys OutlookMegan Durisin
Soybean futures fell to a four-year low as favorable weather aids farmers in gathering a crop forecast at the largest ever in the U.S., the world’s top grower. Corn and wheat declined.
Warm, dry Midwest conditions in the next five days should help maturing crops and harvesting, Bryce Anderson, a meteorologist at DTN, said in a note. The Department of Agriculture estimates soybean output this year will rise 19 percent to 3.913 billion bushels from 2013. Farmers collected 3 percent of the oilseeds as of Sept. 21, down from an average of 8 percent in the prior five years, according to the USDA.
“The very favorable weather outlook over the next five to seven days is pushing the idea that we’ll see some meaningful harvest progress between now and next week,” Greg Grow, the director of agribusiness for Archer Financial Services Inc. in Chicago, said in a telephone interview. “The demand is coming at these prices, but the supply is looming extremely large.”
Soybean futures for November delivery dropped 1.5 percent to close at $9.2275 a bushel at 1:15 p.m. on the Chicago Board of Trade. Earlier, the price touched $9.2225, the lowest since July 7, 2010. Trading was 33 percent above the 100-day average for this time, data compiled by Bloomberg show.
The USDA today reported net export sales of 2.57 million metric tons of soybeans in the week ended Sept. 18, up from 1.47 million a week earlier. Corn and wheat also rose.
Wheat futures for December delivery slumped 1.3 percent to $4.74. The price touched $4.6625, the lowest since June 30, 2010. Today, the International Grains Council raised its outlook for world production in 2014-15 by 0.6 percent to a record 717 million tons on gains in Europe and Ukraine.
Corn futures for December delivery fell 1.1 percent to $3.26 a bushel. On Sept. 23, the grain touched $3.2475, the lowest since June 29, 2010.
This year, soybeans have tumbled 29 percent, corn has slumped 23 percent and wheat is down 22 percent.