(Businessweek) – Soybeans fell for a third day to the lowest level in more than two weeks as rain and cool weather in the U.S. boost optimism that production in the biggest grower will surge to a record. Corn rebounded from a 33-month low.
An expected lack of heat across the U.S. Midwest in the next two months will avoid “significant stress” for corn and soybeans, MDA Weather Services wrote in a forecast today. Scattered thunderstorms are forecast in the Midwest and no hot weather is expected during the next 10 days, favoring corn and soybeans, DTN said in a report yesterday.
“Recent improvements in the U.S. weather outlook have alleviated some risk around the new crop-supply outlook,”Rabobank International wrote in a report today. “We maintain a bearish view on most agri commodity prices this month.”
Soybeans for November delivery fell 1 percent to $12.4425 a bushel on the Chicago Board of Trade by 5:45 a.m., and earlier today touched $12.425, the lowest for a most-active contract since July 8. Futures trading volumes were 68 percent higher than the average in the past 100 days for this time of day, according to data compiled by Bloomberg. Corn for December delivery gained 0.2 percent to $4.81 a bushel after dropping to $4.795 yesterday, the lowest since Oct. 5, 2010.
Soybeans have slumped 12 percent this year as the U.S. Department of Agriculture predicts domestic output will rise to a record 3.42 billion bushels, boosting world stocks 20 percent from a year earlier to 74.1 million tons, an all-time high.
Corn has tumbled 31 percent this year as farmers in the U.S. are set to harvest a record 13.95 billion bushels, 29 percent more than 2012 when the worst drought since the 1930s damaged Midwest fields, USDA estimates. World wheat production may be a record 697.8 million tons on a rebound in output in Russia and the European Union, the agency projects.
Wheat for September delivery added 0.3 percent to $6.555 a bushel in Chicago, while milling wheat for November delivery traded on NYSE Liffe in Paris fell 0.1 percent to 190 euros ($250.73) a ton.
