March 19 (Bloomberg) -- Soybeans snapped the longest slump in more than a month on speculation that farmers in the U.S., last season’s largest grower, may withhold supplies after spot prices fell to the cheapest since June.
Soybeans delivered to U.S. Gulf elevators were at $14.775 a bushel as of yesterday, the lowest price since June 18, U.S. Department of Agriculture data compiled by Bloomberg show. Grain trucks were waiting in a 15 mile line to deliver supplies to Brazil’s main Port of Santos, road operator Ecovias said in a statement March 15. Brazil is expected to harvest a record 83.5 million metric tons of soybeans this season, overtaking the U.S. as the world’s biggest exporter, according to the USDA.
"Farmers will hoard their crops, waiting for supply to dry up in South America," Tetsu Emori, a commodity fund manager at Astmax Investment Management Inc., which manages about $700 million, said by phone from Tokyo. "Prices are just too cheap for them. They’ll wait for fresh demand from China to push prices higher."
Soybeans for May delivery rose 0.3 percent to $14.1375 a bushel by 6:20 a.m. on the Chicago Board of Trade. Volume was 52 percent below the 100-day average for that time of the day. The oilseed rose after declining 4.7 percent in the past five sessions, the longest drop since the similar period ended Feb. 12.
Corn for May delivery rose 0.6 percent $7.2425 a bushel, after touching $7.245, the highest for a most-active contract since Feb. 6.
Prices also were supported as a USDA report on March 28 may show U.S. stockpiles tightened from a year earlier, after drought cut harvests last year. "Early estimates" before the USDA quarterly stockpiles report indicate corn inventories on March 1 were about 5 billion bushels and soybeans supplies were 930 million to 950 million bushels, Paul Georgy, the president of Allendale Inc., said in an e-mailed report today. Last year, the U.S. held 6 billion bushels of corn and 1.37 billion bushels of soybeans.
Wheat futures for May delivery rose 0.4 percent to $7.1525 a bushel in Chicago. In Paris, milling wheat for the same delivery month increased 0.5 percent to 236 euros ($305) a ton on NYSE Liffe.
--Editors: Sharon Lindores, John Deane
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