Soybeans and corn fell in Chicago, extending weekly losses, on signs that supplies from the next U.S. harvest will be ample as crops in the Midwest are developing in good condition. Wheat was little changed.
Yields in Iowa, historically the biggest U.S. producer of both crops, may rise to records this season as cool temperatures boosted plant development, according to estimates from Doane Advisory Services, which toured fields this week. Seventy-two percent of soybeans and 76 percent of corn in the main U.S. growing areas were in good or excellent condition as of July 20, according to the U.S. Department of Agriculture.
“The weather continues to be only just the slightest bit less than absolutely perfect all across the Midwest as the corn pollinates and as the beans set pods,” economist Dennis Gartman wrote in his daily Gartman Letter. “We are witnessing truly record and truly gargantuan crops.”
Soybeans for November delivery fell 0.8 percent to $10.7575 a bushel by 6:59 a.m. on the Chicago Board of Trade and are down 0.9 percent this week. Prices rose to $11.0725 yesterday, the highest for a most-active contract since July 17, after USDA data showed U.S. exports surged in the week ended July 17. Futures also had gained on concern that temperatures were too cool, slowing plant maturity.
Corn for December delivery dropped 0.8 percent to $3.665 a bushel. Prices are set to decline 3.2 percent this week, a fifth straight weekly decrease.
Iowa corn yields may be 190 bushels an acre, up from 165 bushels last year and a prior record of 182 bushels set in 2009, according to St. Louis-based Doane. Soybean yields were pegged at a record 53 bushels an acre. The company evaluated fields in Iowa, Illinois, Minnesota and Nebraska this week, and will tour the eastern Midwest beginning July 27, before releasing a national crop forecast Aug. 1.
The USDA is set to update its weekly crop progress report July 28. The agency, which will release its first field-based crop forecasts on Aug. 12, estimated this month that U.S. farmers would harvest a record soybean crop at 3.8 billion bushels, while corn output at 13.86 billion bushels will be the second-highest ever.
Wheat for September delivery was unchanged at $5.2875 a bushel in Chicago, set to decline 0.7 percent this week. In Paris, milling wheat for November delivery fell 0.4 percent to 180.25 euros ($242.38) a metric ton on Euronext.