Soybeans Slump on Outlook for Bumper Crop; Wheat Declines

September 17th, 2014

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Category: Grains, Oilseeds

SoybeanCorn450x299Low50(Businessweek) – Soybean futures declined on mounting speculation that a bumper crop in the U.S., the world’s largest grower, will overwhelm demand. Wheat dropped to the lowest since 2010, and corn rose.

Soybean prices tumbled 24 percent this year. The Department of Agriculture has forecast output of the oilseed crop at an all-time high of 3.913 billion bushels, up 19 percent from last year. Corn production was projected at a record 14.395 billion bushels, up 3.4 percent.

“We’re focused on supply now, instead of the demand side of the market,” Brian Grete, editor of the Professional Farmers of America Newsletter in Cedar Falls, Iowa, said in a telephone interview. “That isn’t going to change anytime soon. It’s definitely a bearish tone. Every move up is seen as a fresh selling opportunity.”

Soybean futures for November delivery fell 0.9 percent to close at $9.8075 a bushel at 1:15 p.m. on the Chicago Board of Trade. Trading was 31 percent above the average in the past 100 days for this time, according to data compiled by Bloomberg. The oilseed on Sept. 11 touched $9.695, the lowest for a most-active contract since July 28, 2010.

Wheat futures for December delivery fell 0.9 percent to $4.9625 a bushel. The grain touched $4.91, the lowest since July 1, 2010, after climbing as much as 1.5 percent. This year, the grain has dropped 18 percent.

Corn futures for December delivery rose 0.2 percent to $3.4375 a bushel. Earlier, the price declined as much as 1.2 percent. The commodity has dropped 19 percent this year.

Corn is the biggest U.S. crop by value, followed by soybeans, hay and wheat, government data show.

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