Soybeans Fall as USDA Seen Raising Acreage Estimate; Wheat Gains

June 26th, 2013

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Category: Grains, Oilseeds

(Bloomberg) – Soybeans fell on speculation that the U.S. Department of Agriculture will raise its forecast for plantings in the largest grower and exporter, boosting the outlook for a record harvest. Wheat advanced.

U.S. farmers will probably plant 77.811 million acres (31.49 million hectares) this year, more than the 77.126 million acres forecast by the USDA in March, according to the average estimate of as many as 34 analysts and trading companies surveyed by Bloomberg. The acreage report is due for release in two days.

“We’ll possibly see an increase in acreage for soybeans,”Joyce Liu, an analyst at Phillip Futures Pte., said by phone from Singapore today.

Soybeans for delivery in November fell 0.6 percent to $12.71 a bushel by 6:48 a.m. on the Chicago Board of Trade.

Farmers will probably switch some acres away from corn to soybeans after data showed weather in Iowa, Minnesota, Wisconsinand Michigan from March through May was the wettest on record going back 119 years, according to the Bloomberg survey. Soybeans can be planted later than corn and wheat.

Wheat for September delivery climbed 0.3 percent to $6.8675 a bushel. Cold weather in Siberia is one reason Russia’s wheat crop won’t match the government’s target of 50 million to 54 million metric tons, Russia’s Grain Union President Pavel Skurikhin said. Wheat futures in Paris gained 0.1 percent.

Corn for delivery in December rose 0.4 percent to $5.465 a bushel in Chicago.

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