U.S. Grain, Soy Futures Settle Lower as Harvest Advances

September 29th, 2015

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Category: Grains, Oilseeds

soybean field & blue sky 450x299(Nasdaq) – Grain and soybean prices finished lower Monday, pressured by the advancing U.S. harvest and reports that yields in much of the Midwest are topping analysts’ expectations.

Soybean futures fell more than 1%, leading the declines, as traders weighed anecdotal reports from farm fields that suggest the U.S. crop may turn out to be larger than federal forecasters projected earlier this month.

Soybean and corn prices also were buffeted by growers’ progress in collecting crops in the Midwest, adding fresh supplies to the market. Harvests for both commodities are about one-fifth complete, analysts estimate.

“We just didn’t have any momentum” to continue the market’s rally late last week, said Daniel Hueber, general manager of the Hueber Report, a futures brokerage in Sycamore, Ill. “The harvest is really starting to kick into gear.”

Soybeans for November delivery slid 12 1/2 cents, or 1.4%, to $8.76 3/4 a bushel at the Chicago Board of Trade.

Corn prices also fell, due in part to favorable harvest weather and reports that recent yields for that crop also are surpassing expectations. Corn for December delivery shed 2 1/4 cents, or 0.6%, to $3.86 3/4 a bushel at the CBOT.

Wheat prices dropped amid weakness in corn futures and ongoing pressure from large global supplies. Futures had climbed in overnight electronic trading because of concerns about dryness in major wheat producers Ukraine, Australia and Argentina.

December wheat declined 2 1/4 cents, or 0.4%, to $5.05 1/2 a bushel in Chicago trading.

Traders are preparing for the U.S. Department of Agriculture’s quarterly grain-and-soybean stockpiles report on Wednesday. Analysts estimate that domestic supplies for corn, wheat and soybeans were above last year’s levels as of Sept. 1, with corn reserves considerably larger.

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