(Bloomberg) – Soybean futures had the biggest drop in almost three weeks on mounting speculation that the U.S., the world’s second-biggest grower, will produce the most ever this year. Corn fell, and wheat climbed.
Soybean output will be a record 3.39 billion bushels in the season that starts Sept. 1, 12 percent more than a year earlier, when crops were hurt by drought, the U.S. Department of Agriculture said yesterday. Analysts in a Bloomberg survey expected a forecast of 3.371 billion. Inventories may more than double from a year earlier to 265 million bushels, the USDA said.
“Forecasts for a significant build in 2013-14 U.S. soybean carryout could put November soybean futures in a downtrend,”Dan Cekander, the director of grain-market analysis at Newedge USA LLC, said in a report. “Forecasts for five to six days of drier weather next week across the Corn Belt could allow increased U.S. soybean planting.”
Soybean futures for November delivery dropped 1 percent to settle at $13.005 a bushel at 1:15 p.m. on the Chicago Board of Trade, the biggest decline for a most-active contract since May 24.
Corn futures for December delivery fell 0.4 percent to $5.3525 a bushel. Earlier, the price touched $5.29, the lowest since May 24. The USDA forecast for domestic production was larger than analysts forecast.
Wheat futures for July delivery rose 0.4 percent to $6.855 a bushel. Earlier, the price touched $6.75, the lowest since May 21.
Corn is the biggest U.S. crop, followed by soybeans, hay and wheat, USDA data show. Brazil is the top oilseed producer.
