Sept. 4 (Bloomberg) -- Soybeans declined in Chicago, paring the biggest gain in a week, after a report showed heat and dryness had less effect on crop conditions in the U.S. than some analysts expected.
An estimated 54 percent of the U.S. soybean crop, the world’s largest, was in good or excellent condition in the latest week, down from 58 percent on Aug. 25, the Department of Agriculture reported yesterday, based on a survey of the 18 biggest growing states. The corn crop was rated 56 percent good to excellent, down from 59 percent a week ago.
"Some of the crop conditions for soybeans didn’t deteriorate as much as would have been expected," Michael Pitts, a commodity sales director at National Australia Bank Ltd., said from Sydney today. "Soybeans are most at risk."
Soybeans for delivery in November dropped 1.1 percent to $13.71 a bushel at 6:46 a.m. on the Chicago Board of Trade. The oilseed rose 2.2 percent yesterday, the most since Aug. 26, on speculation dryness in the past 30 days hurt yield prospects.
Weekend rains favored parts of the eastern and far western Midwest as well as the northeastern Delta, Commodity Weather Group LLC said in a report yesterday. Weather will remain dry today, with ominous implications for production loss, especially for soybeans, DTN said yesterday. Prices rose 13 percent last month, the most since July 2012.
"We’ve seen a pretty big rally off the back of some concerns of how dry it was in the U.S., particularly for soybeans," said Graydon Chong, a grains and oilseeds analyst at Rabobank International in Sydney. "We’ll see these little bits of correction when the markets think we’ve rallied too far."
Corn for delivery in December slid 0.8 percent to $4.7125 a bushel and wheat for delivery the same month dropped 0.4 percent to $6.4475 a bushel. Milling wheat for delivery in November traded on NYSE Liffe in Paris fell 0.1 percent to 188.50 euros ($248.29) a metric ton.
--With assistance from Phoebe Sedgman in Melbourne and Rudy Ruitenberg in Paris. Editors: Dan Weeks, Nicholas Larkin.
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