Soyabeans slip September 12, 2013

September 12, 2013

US Midwest soya
US Midwest soya

US soyabeans futures slipped on Tuesday on forecasts for modest rainfall that could bring some relief to crops stressed by recent dryness in the US Midwest. Corn and wheat futures edged higher on positioning ahead of US government crop reports due out on Thursday. The US soyabean crop is in its weather-sensitive, pod-setting stage of development, and a turn to hot, dry weather in August and early September has been trimming yield potential. Prices last week approached an 11-month high on concerns about crop damage.

However, light showers will fall in parts of the Midwest this week and showers next week are expected to help boost yield prospects for later maturing soyabeans, according to MDA Weather Services. Midday weather forecasts predicted more rain than previously expected in southern Iowa, the top soyabean- and corn-producing state, and in northern Missouri from Sunday to Monday, said Andy Karst, meteorologist for World Weather Inc.

“We’re expecting a more scattered-shower-type pattern than the model is predicting,” he said. “There may be some decent coverage in Iowa and Nebraska, but it’s going to be pretty light.” Chicago Board of Trade November soyabeans were down 1-1/2 cents to $13.55 a bushel.

Traders are paying close attention to US crop weather because large harvests are needed to replenish low inventories. US soyabean supplies were at a nine-year low at the end of August, while corn supplies hit a 17-year low, according to USDA data. There is more uncertainty than usual about crop size because soyabeans and corn were planted later than normal in the spring due to rains, postponing the start of the autumn harvest. Traders are waiting for updated signals about the autumn harvests from the US Department of Agriculture, which is set to release a monthly crop production report on Thursday.

The USDA is expected to trim its soyabean yield estimate to 41.2 bushels per acre from 42.6 bushels in August, according to a Reuters poll. Analysts project USDA will cut its estimate for the average corn yield to 153.7 bushels, down from the 154.4 bushels forecast in August. The corn harvest has started in southern United States, where large yields have been reported, but is still in its earliest phases. Prices are expected to come under more pressure as the harvest advances. December corn rose 5-1/2 cents to $4.69 a bushel, while December wheat gained 5-1/4 cents to $6.46-1/2 a bushel. Courtesy Reuters

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