Soybeans Drop as Rains in Parts of Brazil Improve Crop Prospects
Soybeans declined for the first time in three days on speculation rains in parts of Brazil may improve planting prospects in the world’s largest grower and exporter after drought cut the output in the U.S.
The contract for delivery in January lost as much as 0.6 percent to $14.045 a bushel on the Chicago Board of Trade, before trading at $14.0725 at 10:32 a.m. Singapore time.
More than 50 millimeters of rain fell in some soybean and cotton growing areas from Mato Grosso to Minas Gerais in the week to Nov. 17, the U.S. Department of Agriculture said in its weekly crop bulletin yesterday. The nation’s soybean and corn growing areas have mostly favorable conditions for planting and early development, Telvent DTN Inc. said yesterday.
“All eyes are certainly on the corn and soybean crop in South America,” Michael Creed, an agribusiness economist at National Australia Bank Ltd., said by phone from Melbourne today. “That’s a large swing factor as far as crops are concerned.” Favorable weather would remove some of risks to production, he said.
Corn for delivery in March slipped 0.1 percent to $7.4625 a bushel in Chicago, while wheat for delivery in the same month was unchanged at $8.605 a bushel.
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