(Bloomberg) – Soybeans fell after their biggest rally in a week as a report showed crops in the U.S., the biggest producer, had not worsened as much as some analysts expected after hot, dry weather.
The contract for delivery in November dropped as much as 1.6 percent to $13.6525 a bushel on the Chicago Board of Trade, and was at $13.71 at 10:48 a.m. in Singapore. Futures gained 2.2 percent yesterday, the most since Aug. 26, on speculation lack of rain in the past 30 days damaged prospects for yields.
An estimated 54 percent of the soybean crop was in good or excellent condition in the latest week, down from 58 percent on Aug. 25, the U.S. Department of Agriculture said in a report yesterday, based on a survey of the 18 biggest growing states. The corn crop was rated 56 percent good to excellent, down from 59 percent a week ago.
“Some of the crop conditions for soybeans didn’t deteriorate as much as would have been expected,” said Michael Pitts, a commodity sales director at National Australia Bank Ltd., from Sydney today. “Soybeans are the ones most at risk.”
Weekend rains favored parts of the eastern and far western Midwest as well as the northeastern Delta, Commodity Weather Group LLC said in a report yesterday. The weather will continue to be dry today, with ominous implications for production loss especially in soybeans, DTN said yesterday.
“We’ve seen a pretty big rally off the back of some concerns of how dry it was in the U.S. particularly for soybeans,” said Graydon Chong, a grains and oilseeds analyst at Rabobank International in Sydney. “We’ll see these little bits of correction when the markets think we’ve rallied too far.”
Wheat, Corn
The biggest grain-handler in Australia’s largest wheat-producing state has raised its crop forecast after late rains eased dryness before the harvest gets under way next month, boosting global supply prospects.
CBH Group may receive 10 million metric tons to 10.6 million tons of Western Australian grain, up from 9 million tons forecast a few weeks ago, according to David Capper, general manager operations at the Perth-based company, who said wheat receivals will be about 6.5 million tons.
Wheat for delivery in December dropped as much as 0.6 percent to $6.4325 a bushel before trading at $6.45, while corn lost as much as 1.7 percent to $4.6725 a bushel and traded at $4.70. Both grains fell to the lowest level since Aug. 23.
