(Bloomberg) – Soybeans fell for a second day in Chicago, paring a sixth weekly climb, on speculation rain in parts of the U.S. Midwest may halt a decline in crop conditions in the world’s largest grower of the oilseed.
Areas of Minnesota and Wisconsin had more than 1 inch (25 millimeters) of rain over the weekend, according to data from World Ag Weather. Rain should return to the Midwest early this week, with more precipitation expected in northwestern areas later in the week, helping to rebuild moisture, MDA Weather Systems predicted Sept. 13.
“Forecasts for beneficial rain in the U.S. this week weighed on sentiment,” Luke Mathews, a commodity strategist at Commonwealth Bank of Australia (CBA), wrote in a note.
Soybeans for delivery in November lost 1.1 percent to $13.665 a bushel by 5:34 a.m. on the Chicago Board of Trade. The oilseed capped its best run of weekly advances since 2009 last week as heat and dryness across the Midwest raised concern of falling yields.
Corn for delivery in December added 0.1 percent to $4.595 a bushel and wheat for the same delivery month rose 0.4 percent to $6.4375 a bushel. Milling wheat for delivery in November traded on NYSE Liffe in Paris fell 0.3 percent to 185.75 euros ($247.86) a metric ton as the dollar reached a two-week low against the single European currency.
“The strength of the euro at this start of the week hurts our competitiveness, particularly compared to Black Sea origins,” Paris-based farm adviser Agritel wrote in a note.
Gains by the euro against the dollar raise the cost of crop exports from the European Union in terms of the U.S. currency.
