Corn to Soybeans Drop as Crops in Best Shape Since 1994

July 15th, 2014

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Category: Grains, Oilseeds

(Bloomberg) – Corn and soybeans fell in Chicago, trading near the lowest levels since 2010, after a government report found U.S. crops are in the best condition in 20 years, boosting yield expectations for the biggest grower and exporter.

Seventy-six percent of corn and 72 percent of soybeans were in good or excellent condition as of July 13, the best shape for this time of year since 1994, a U.S. Department of Agriculture report showed yesterday. Crops in the Midwest have seen ample rain, and there’s no significant hot weather in the forecast that could damage developing plants, forecaster DTN said.

“Weather remained largely ideal across the U.S. Corn Belt last week, as the polar vortex swept cooler-than-normal temperatures into the central Corn Belt just in time for pollination,” Morgan Stanley analysts including Bennett Meier wrote in an e-mailed report today. “Despite cooler temps, corn pollination accelerated last week.”

Corn for December delivery fell 0.7 percent to $3.855 a bushel at 6:29 a.m. on the Chicago Board of Trade. Prices fell to $3.8025 yesterday, the lowest for a most-active contract since July 28, 2010, before rebounding to close 0.9 percent higher. Corn entered a bear market this month on prospects that a second straight bumper U.S. harvest will boost global supply.

Soybeans for November delivery slid 0.4 percent to $10.815 a bushel. Prices advanced about 1 percent yesterday, snapping a 10-day decline. The oilseed dropped to $10.65 on July 11, the lowest price since October 2010.

The U.S. corn harvest may be the second-largest ever at 13.86 billion bushels, while soybean production at 3.8 billion bushels will be the biggest on record, the USDA said July 11. The U.S. may overtake Brazil as the world’s biggest soybean exporter in the 2014-15 season, the USDA estimates.

Wheat for delivery in September retreated 0.5 percent to $5.35 a bushel in Chicago. The price touched $5.2425 yesterday, the lowest price since July 2010, before rebounding. In Paris, milling wheat for November delivery declined 0.1 percent to 178.50 euros ($243.01) a metric ton on Euronext.

 

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