Soybean futures declined, capping the biggest four-day drop in seven weeks, and corn fell for a seventh consecutive session on speculation that record crops in South America will slow overseas demand for US supplies, reported Bloomberg.
Soybean production in Brazil and Argentina will jump 28% to a record 136.5 million metric tons this year and corn will rise 5.9% to an all-time high, the US Department of Agriculture said recently. Rain during the past three days and more later this week will shrink crop stress to less than a third of Argentina fields from half last week, and precipitation will aid crops in Brazil, Commodity Weather Group LLC said in a report.
“The South America crops are getting bigger, and rains will add to yield potential this week,” said Greg Grow, the director of agribusiness for Archer Financial Services in Chicago.
Soybean futures for March delivery fell 1.4% to close at US$14.315 (€10.70) a bushel at 2 pm on the Chicago Board of Trade. Prices have tumbled 4.3% in four sessions, the biggest decline since December 20th, as concern eased that dry weather in Argentina and too much rain in Brazil would limit production gains. Soybeans are down 20% from a record US$17.89(€13.37) in September, when drought cut US production for a third straight year.
Global soybean stockpiles will be 60.1 million tons before the start of this year’s Northern Hemisphere harvest, more than the 59.5 million estimated last month and 8.8% larger than a year earlier, the USDA said last week. Corn reserves will be 118.04 million tons, up from 115.99 million predicted last month.
To top the US, Brazil will be the largest producer and exporter for the first time. The biggest shipper of soy-based animal feed and cooking oil is Argentina.
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