Soybeans reached a six-week low in Chicago after government reports showed improving prospects for U.S. yields and bigger-than-expected inventories. Corn fell to the lowest since 2010, while wheat rose.
Fifty-three percent of soybeans were in good or excellent condition as of Sept. 29, up from 50 percent a week earlier, the U.S. Department of Agriculture said yesterday. Harvesting is about 11 percent complete. Domestic inventories totaled 141 million bushels on Sept. 1, more than the 125 million bushels projected on Sept. 12, the USDA said in a separate report yesterday.
“Farmers continue to harvest better soybean and corn yields than they expected, signaling bigger crops than the USDA has forecast,” Jason Ward, a market analyst for Northstar Commodity Investment Co. in Minneapolis, said in a telephone interview. “Supplies are getting bigger, and prices are adjusting lower.”
Soybean futures for delivery in November dropped 1.1 percent to close at $12.68 a bushel at 1:15 p.m. on the Chicago Board of Trade. The oilseed touched $12.635, the lowest for a most-active contract since Aug. 16. Prices have tumbled 10 percent this year on the expectation that U.S. production would recover from drought in 2012 and Brazil and Argentina will combined for a record crop.
Corn futures for delivery in December declined 0.6 percent to $4.39 a bushel in Chicago, after touching $4.3525, the lowest since Aug. 31, 2010. The grain has retreated 37 percent this year.
Stockpiles in the U.S., the world’s top grower, were 824 million bushels on Sept. 1, 25 percent more than the 661 million estimated Sept. 12, the USDA said. Analysts in a Bloomberg survey expected 694 million bushels, on average.
The data will probably push corn and soybeans lower and widen wheat’s premium to corn, Damien Courvalin, a Goldman Sachs Group Inc. analyst, said in a report dated yesterday.
Wheat futures for delivery in December rose 0.4 percent to $6.8125 a bushel on the CBOT, after rising 3.2 percent in the third quarter on shrinking U.S. inventories.