Soybeans slid for the seventh session in a row, the longest losing streak in five years, as indications of favorable conditions for US crops bolstered prospects for a record harvest. Wheat soared, although corn also plunged.
Data from the Department of Agriculture showed that 72% of soybeans enjoyed a good or excellent rating as of July 6, the highest rating for the particular time of the year since 1994. Prices of soybean and corn have declined since May because of adequate rains and government data indicating inventories that surpassed expectations.
A Bloomberg survey showed that the USDA may have record projections for the two crops when it releases supply and demand projections on July 11.
“The trade is moving into the mode of expecting not just record corn and soybean yields, but the possibility of bin-buster record yields that come along once in a while and blow all the other records away,” analyst Arlan Suderman of Water Street Solutions in Peoria, Illinois told Bloomberg in a phone interview.
The per-bushel price of soybeans futures for delivery in November lost 0.8% to $11.16 as of 11:44 am on the Chicago Board of Trade. Earlier, the contract went down to $11.15, a low a most-active contract has not touched since December 2011. A slump on Tuesday would mark the longest losing streak since February 2009.
December-delivery Corn futures declined 0.4% to $4.045 per bushel. The grain touched $4.03 on Monday, the lowest price for a most-active contract since August 2010.
Wheat futures for September-delivery ascended 0.1% to $5.575 per bushel, after reaching $5.555, the lowest price since February 3.
According to Reuters, dropping prices for wheat have triggered demand importers, although cheaper Black Sea output has edged US wheat out of the loop in a string of tenders. In the meantime, estimates for higher global export rates has painted a gloomy shipment outlook for US wheat exporters.
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