Corn, Soybeans Drop as U.S. Weather Seen Boosting HarvestMegan Durisin and Whitney McFerron
Corn and soybeans fell in Chicago on speculation that dry weather will accelerate harvests that are forecast to be the biggest ever in the U.S., the world’s top producer of the crops.
Farmers collected about 83 percent of soybeans in the main growing areas as of yesterday, up from 70 percent last week and behind last year’s 86 percent, according to a Bloomberg survey. The corn harvest was at 61 percent, up from 46 percent last week and behind last year’s 73 percent. Much of the western and central Midwest, including top producers Iowa and Illinois, will get less than 1 inch (2.5 centimeters) of rain in the next seven days, National Weather Service data show.
“There’s anticipation that there’s a little more of this grain coming to market in the next week or two,” Dave Marshall, farm-marketing adviser at Toay Commodity Futures Group LLC in Nashville, Illinois, said in a telephone interview. “The last part of the harvest is often the hardest to find a home for.”
Corn futures for December delivery fell 0.9 percent to close at $3.735 a bushel at 1:15 p.m. on the Chicago Board of Trade, the biggest decline for a most-active contract since Oct. 24. The grain rallied 17 percent last month, the most since July 2012, as rain delayed the harvest in the U.S.
Soybean futures for January delivery fell 1.9 percent to $10.2975 a bushel, the largest decrease since Oct. 10. The oilseed jumped 15 percent last month, the most since July 2012. Soybean-meal futures for December delivery fell 4.2 percent to $372.70 per 2,000 pounds today. Prices surged 11 percent last week amid bottlenecks on U.S. railways.
Weather conditions for corn and soybean harvests will remain “mostly favorable” during the next five to seven days in the U.S. Midwest, DTN meteorologist Joel Burgio wrote today. Growing areas in Brazil, the biggest soybean exporter last year, will see scattered showers in the next week that should aid recently planted crops, DTN said.
The U.S. Department of Agriculture is scheduled to update its weekly crop-progress report today.
Wheat futures for December delivery in Chicago gained 1.1 percent to $5.3825 a bushel. Prices climbed 11 percent in October, the most since March.