Grains: Soybean Drops on US Crop Prospects, Wheat Flops, Corn Flat

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Grains: Soybean Drops on US Crop Prospects, Wheat Flops, Corn Flat

Soybean futures tumbled for the third day in a row on anticipation that rain in the coming week will bolster harvests after projections by the US government yesterday that production this year will ascend to a record.

Most of the crop from North Dakota to Ohio will receive as much as 0.75 inch (1.9 centimeters) of rain, as predicted by QT Weather in Chicago. Soybean harvests will surge 4.8% to 45.5 bushels per acre from a year earlier, and corn will jump 5.4% to 167.4 bushels, according to the Department of Agriculture. The US is the world’s leading producer of the grain and oil seed.

“The forecast looks very good for boosting both corn and soybean yields. There is not much consumptive buying interest because people expect the yields USDA forecast yesterday will get bigger,” Greg Grow of Chicago-based Archer Financial Services Inc. told Bloomberg by phone.

November-delivery Soybean futures dropped 1% to $10.4875 per bushel as of 12:09 p.m. on the Chicago Board of Trade. The price reduced 2.3% in the prior two sessions. Yesterday, the oilseed price reached $10.43, the lowest level for a most-active contract since Oct. 4, 2010.

Soybean-oil futures for settlement in December declined 1.5% to 34.45 cents per pound. Earlier, the price reached 34.42 cents, a low last registered in Oct. 9, 2009.

December-settlement corn futures were flat at $3.69 per bushel after dropping as much as 0.9%.

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Wheat futures for December delivery plunged 0.7% to $5.475 per bushel. The price declined 2.6% in the prior two days.

According to Reuters, estimated US wheat ending inventories were nearly flat on July, although global wheat stockpiles climbed to about 193 million tons, surpassing expectations.

In Russia, wheat crop soared by 6 million tons on the month. Ukraine’s yield was projected 1 million tons higher and China’s was raised by 2 million.

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To contact the reporter of this story; Jonathan Millet at john@forexminute.com