Soybeans Fall on Bets Favorable Rain Will Aid Brazil CropLydia Mulvany
Soybean futures fell the most in 19 weeks as forecasts for rain boost crop prospects in Brazil, the world’s top exporter last season. Wheat rose to the highest since August on concern a U.S. freeze will damage plants.
Chances of precipitation in central Brazil increased, signaling relief for parched plants, Bethesda, Maryland-based Commodity Weather Group LLC said today in a report. Dryness makes the oilseed more vulnerable to disease, according to Alan Kluis, the president of Kluis Commodities in Wayzata, Minnesota.
“The forecast does look wetter,” Kluis said in a telephone interview. Without rain, “it gets to be significant potential yield impact,” he said.
Soybean futures for January delivery fell 2.9 percent to close at $10.225 a bushel on the Chicago Board of Trade, the biggest drop for a most-active contract since June 30.
In the week ended Nov. 6, export sales from the U.S., the second-biggest shipper last season, fell 33 percent to 1.074 million metric tons from a week earlier, government data showed today.
On Nov. 10, the U.S. Department of Agriculture said domestic output this year will rise 18 percent to a record 3.958 billion bushels. The agency boosted its forecast 0.8 percent from October.
Soybean-meal futures for January delivery dropped 3.9 percent to $365 for 2,000 pounds, the biggest decline for the contract since June 30.
This week, the January price dropped 1.8 percent, halting a five-week rally, as domestic shipping concerns eased, Kluis said.
Wheat futures for March delivery rose 1.2 percent to $5.6275 a bushel. Earlier, the price reached $5.675, the highest since Aug. 29, as concerns mounted that freezing conditions in northeast Colorado, western Nebraska and northwest Kansas will damage crops.
Corn futures for March delivery fell 1.1 percent to $3.945 a bushel.