Soyabeans fall two percent

September 18, 2013

US grains
US grains

US soyabeans fell 2 percent on Monday for the second straight session as forecasts for more rain this week eased concerns about declining US harvest prospects and offset a tighter-than-expected supplyy outlook from the government Corn slipped on reports of big yields from the early US harvest, adding to a sharp drop since last Thursday’s surprise increase in the US Department of Agriculture’s production forecast. Wheat eased under pressure from big US supplies.

US weather models called for more rain later this week, with temperatures forecast to be lower, analysts said, easing stress on some late-planted soyabeans that have endured intense heat and sparse rainfall in the past month. But an expected 0.25 to 1.25 inches of rain across 60 percent of the Crop Belt will arrive too late to help most soyabean plantings, a meteorologist said.

“From a soil moisture standpoint, it will start to reverse some of those deficits,” said meteorologist Joel Widenor of the Commodity Weather Group. “It’s too bad it wasn’t three or four weeks ago.” Some farmers are optimistic that the rains will help, said Mike Zuzolo, president of Global Commodity Analytics. “Based upon producer comments today and at the end of last week, they see 20 to 25 percent of their bean fields viable enough to be able to get help from this rain,” he said. “A follow-up rain mid-week or later is going to be useful as well, as far as trying to build a bit more yield into the beans, and maybe bigger beans in the pods.”

Funds also pressured soyabeans by lightening their long positions in the oilseed and buying corn to unwind spread trades between the crops, said Sterling Smith, futures specialist at Citigroup. The USDA added to soyabean supply concerns on Thursday by making a larger-than-expected cut to its estimate for 2013/14 ending stocks, casting doubt on the scope for supply to be replenished after last year’s drought-hit harvest.

Chicago Board of Trade November soyabeans lost 2.4 percent, or 33-1/4 cents, at $13.48-1/4 a bushel. The US soyabean crush declined 5 percent last month to 110.502 million bushels, versus 116.338 million bushels in July, National Oilseed Processors Association data showed on Monday. Analysts had forecast a monthly crush of 110.7 million bushels, according to a Reuters poll. CBOT December corn slipped 0.5 percent, or 2-1/2 cents, to $4.56-1/2 a bushel. It fell in the past two sessions after the USDA surprised the market by raising its crop production forecast to a record high, despite unfavourable weather. CBOT December wheat eased 1/4 cent to $6.41-1/4 a bushel. Courtesy Reuters

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