(Businessweek) – Soybeans and corn fell ahead of today’s U.S. government crop report that may show planting increased and conditions improved in the U.S. Midwest on warmer, drier weather.
The Midwest was forecast to get more favorable weather for corn and soybeans, with warmer temperatures and less rain, DTN reported June 21. The U.S. Department of Agriculture last week said 64 percent of soybeans were in good or excellent condition as of June 16, from 56 percent a year earlier. Corn was rated 64 percent good-to-excellent, from 63 percent a week earlier.
“Soybean plantings stood at 85 percent complete last week, but with improved drier weather we expect this number to be up in the mid 90s,” Jaime Nolan Miralles, a commodity risk manager at FCStone Commodity Services (Europe) in Dublin, wrote in a note to clients. “Conditions are also expected to improve for beans and corn.”
Soybeans for November delivery shed 0.8 percent to $12.63 a bushel on the Chicago Board of Trade by 4:48 a.m. The oilseed fell 1.9 percent last week. Corn for December delivery slumped 1.6 percent to $5.47 a bushel in Chicago.
“The Midwest is meant to see generally dry conditions but interspersed with enough rain to keep things under a favorable production outlook,” Luke Mathews, a commodity strategist at Commonwealth Bank of Australia (CBA), said by phone from Sydney today.
The USDA projects that domestic corn and soybean output will rise to records this year, rebounding from a drought last year that damaged crops and eroded supplies.
Wheat for September delivery declined 0.8 percent to $6.9925 a bushel. Milling wheat for November delivery traded on NYSE Liffe in Paris dropped 0.9 percent to 198.75 euros ($260.46) a metric ton.
