As much as three times the normal amount of precipitation fell in central and eastern Kansas in May, National Weather Service data show. The harvest in the state, which last year at this time was 48% complete, hasn’t started in 2013 after cold weather prevented plants from coming out of winter dormancy.
“The rains we’ve had in the last two or three or four weeks were more beneficial than we thought,” Larry Glenn, an analyst at Frontier Ag in Quinter, Kansas, said by telephone. “There were some areas that got some good moisture.”
Wheat futures for July delivery fell 2% to $6.825 a bushel in Chicago, after touching $6.79, the lowest for a most- active contract since May 21. Prices have tumbled since reaching a high last year of $9.4725 on July 23.
U.S. soybean inventories may also double before the 2014 harvest as production rebounds from three consecutive years of drought, the government said.
Reserves on Aug. 31, 2014, will total 265 million bushels, up from this year’s projection of 125 million, the USDA said today in a report. The average estimate of 30 analysts surveyed by Bloomberg was 268 million bushels. U.S. production was forecast at 3.39 billion, up from 3.015 billion harvested last year and above the 3.371 billion expected on average in a Bloomberg survey.
Soybean futures for November delivery, after the harvest, slipped 0.8% to $13.1575 a bushel on the CBOT, heading for the second decline in three sessions. Prices are down from a record $17.89 in September on forecasts for record combined output in Brazil, the world’s top shipper of the oilseed, and Argentina, the leading exporter of soy-based animal feed and cooking oil.
Increased supplies later this year may reduce feed costs for meat producers including Tyson Foods Inc. and Smithfield Foods Inc.