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Beans, Corn Decline on Improving Midwest Weather Outlook

August 29, 2013
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Aug. 29 (Bloomberg) -- Soybeans and corn fell in Chicago on speculation that cooler temperatures in the Midwest next week will ease concern that U.S. crops will be damaged by heat or dry weather. Wheat also declined.

Temperatures near 100 degrees Fahrenheit (38 degrees Celsius) in parts of the Midwest today and tomorrow will begin to cool during the weekend and early next week, and chances for rain are in the forecast Aug. 31 for areas of Iowa, the top growing state, National Weather Service data show. Soybean futures have climbed 13 percent this month on concern crops would suffer damage before the harvest starts in the next month.

"Soybean prices are losing ground," Arnaud Saulais, a broker at Starsupply Commodity Brokers in Nyon, Switzerland, said in a report. "At the moment, traders are very nervous and torn between cooler and wet weather in the Midwest and strength on the energy markets."

Soybeans for November delivery fell 0.4 percent to $13.6775 a bushel at 7:19 a.m. on the Chicago Board of Trade. Prices touched $14.095 on Aug. 27, the highest for a most-active contract since June 6. The oilseed is heading for the biggest monthly gain since July 2012.

Much of the central and northern Midwest, including areas of Iowa, Illinois, Minnesota and Wisconsin, had less than half the normal amount of rain in the past month, according to the National Weather Service.

"The soybean crop, and corn to a lesser extent, are in a critical period to receive moisture," said Michael Pitts, a commodity sales director at National Australia Bank Ltd., from Sydney today. "Certainly there are concerns over the U.S. soybean crop because of the consistent dryness."

Corn for December delivery fell 0.5 percent to $4.785 a bushel, leaving the price little changed this month. Futures trading volumes were 30 percent below average for the past 100 days for this time of day, according to data compiled by Bloomberg.

Wheat for December dropped 0.5 percent to $6.56 a bushel in Chicago. In Paris, milling wheat for November delivery fell 0.7 percent to 188 euros ($249) a metric ton on NYSE Liffe.

 

--With assistance from Phoebe Sedgman in Melbourne. Editors: Claudia Carpenter, John Deane

 

To contact the reporters on this story: Whitney McFerron in London at wmcferron1@bloomberg.net; Ranjeetha Pakiam in Kuala Lumpur at rpakiam@bloomberg.net

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RELATED TOPICS: Corn, Soybeans, Marketing

 
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