Soybeans fell from the highest level in almost two weeks on prospects for dry weather this week. Corn and wheat also declined.
Whitney McFerron and Phoebe Sedgman
Soybeans fell in Chicago from the highest level in almost two weeks on prospects for dry weather this week in the U.S. to allow farmers to accelerate harvesting. Corn and wheat declined.
Farmers gathered 63 percent of soybeans in the main U.S. growing areas as of Oct. 20, below the five-year average pace of 69 percent, the U.S. Department of Agriculture said yesterday. The Midwest will see cold and mostly dry weather from the middle of this week, permitting the harvest to progress, DTN said. World soybean production will rise to a record 281.7 million metric tons this year, the USDA estimated in September, as the U.S. crop recovers from 2012’s drought.
“Soybeans had one of the tighter balance sheets coming into this cropping season,” said Graydon Chong, a grains and oilseeds analyst at Rabobank International in Sydney. “We’re seeing that pressure relieved. As the new-crop supply comes on line, we will likely see prices continue to soften.”
Soybeans for delivery in January slid 0.7 percent to $12.9075 a bushel at 7:19 a.m. on the Chicago Board of Trade. Prices touched $13.0125 yesterday, the highest intraday level for the contract since Oct. 8.
In Brazil, rain this week may slow soybean planting while aiding early crop growth, according to Commodity Weather Group LLC. The country may produce a record 89.5 million tons, higher than a previous estimate of 88.2 million tons, forecaster Safras & Mercado said Oct. 18.
Crop Reports
The USDA is scheduled to update its supply and demand estimates on Nov. 8 after this month’s report was canceled due to a 16-day partial shutdown of the federal government that started Oct. 1. Weekly crop-progress reports weren’t published in that span. The U.S. soybean harvest was 11 percent complete as of Sept. 29.
Corn for delivery in December slumped 0.4 percent to $4.4225 a bushel. The harvest was 39 percent complete as of Oct. 20, behind the five-year average pace of 53 percent, according to the USDA.
Wheat for delivery in December declined 0.4 percent to $6.9725 a bushel. In Paris, milling wheat for delivery in January dropped 0.1 percent to 202.50 euros ($276.89) a ton on NYSE Liffe.
