Soybeans Extend Drop to Lowest Since 2010 on U.S. HarvestPhoebe Sedgman and Whitney McFerron
Soybeans dropped to the lowest in more than four years in Chicago as farmers in the U.S. gather a record crop. Corn and wheat headed for weekly losses.
The U.S. soybean harvest was 3 percent complete in main growing areas as of Sept. 21, the U.S. Department of Agriculture said this week. The agency expects production to climb 19 percent this season to 3.913 billion bushels, the most ever. U.S. corn output may also reach a record at 14.395 billion bushels, the USDA estimates.
“For soybeans and corn in the U.S., there’s ideal conditions for the harvest so far,” Graydon Chong, an analyst at Rabobank International, said by phone from Sydney. “That’s supporting the hypothesis that we potentially see increases to soybean yields going forward, putting extra pressure on the market.”
Soybeans for November delivery fell 0.7 percent to $9.165 a bushel at 7:07 a.m. on the Chicago Board of Trade. Earlier the price touched $9.16, the lowest for a most-active contract since July 2010. Futures are 4.2 percent lower this week, heading for a seventh straight drop that would be the longest run of losses since June 2010.
Corn for December delivery was unchanged at $3.26 a bushel. Prices are set to drop 1.7 percent this week for a sixth straight loss. Harvesting in the U.S. was 7 percent complete as of Sept. 21, according to the USDA.
Maturing crops and harvests in the Midwest should benefit from drier weather in the next five days and temperatures will be above normal, forecaster DTN said in a report today.
Inventories left over from last year’s harvest probably totaled 131 million bushels of soybeans as of Sept. 1, the smallest in 10 years, according to a Bloomberg News survey before the USDA releases its forecast Sept. 30. Corn stockpiles were estimated at 1.191 billion bushels, 45 percent bigger than a year earlier. Record production from this year’s harvest probably will limit the price impact of the USDA report, Morgan Stanley said in an e-mailed note today.
Wheat for delivery in December fell 0.4 percent to $4.72 a bushel, heading for a fourth weekly retreat. In Paris, milling wheat for November delivery dropped 0.7 percent to 149.75 euros ($190.65) a metric ton on Euronext.