Soybeans tumbled on speculation that inventories will be sufficient after farmers planted more this season, with crops enjoying good conditions for the most part in US, the largest producer in the world.
Weekly data from US Department of Agriculture on June 16 indicated that 73% of the soybean crop was in healthy condition as of June 15, up from 16% the previous year. Farmers said in March that they planned to put a record 81.5 million acres under the crop. The state agency will announce a forecast for cultivated area on June 30.
“More than 85 percent of the soybean crop is in very good shape with high yield potential. The acreage increase is the wild card,” Jacquie Voeks of Wisconsin, West Bend-based Stewart-Peterson Group told Bloomberg about the current state of the crop.
November-delivery soybeans contracts dropped 0.5% to exchange at $12.215 per bushel as of 12:15 pm on the Chicago Board of Trade. The price soared 1.3% the past two days in the wake of fears that there would be decreased harvest due to precipitation in Northern parts of the US.
US land under cultivation for soybeans is about 83 million acres, analyst Dale Durchholz of Bloomington, Illinois-based AgriVisor LLC said.
The USDA said in March that farmers intended to cut corn sowing this season by 3.9% to 91.7 million acres. The agency will make a public a report on three-month stockpiles for grains on June 30.
December-delivery corn futures advanced 0.7% to $4.505 per bushel. The grain was on course for the first one-week gain since May 9.
Wheat contracts for delivery in September lost 1.5% to $5.935 per bushel. The price added 2% in the prior two days on fears that quality of the crop would be hurt by rain in the Great Plains, according to AGWeb.
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