Soybeans Drop on Rain Forecast for South American Growing Areas

December 17, 2013 02:47 AM
Soybeans Drop on Rain Forecast for South American Growing Areas

Soybeans fell for the first time in three sessions after forecasts for rain in South America eased concern that developing crops would be hurt by hot, dry weather.

Southwest Argentina may see rain this week, benefiting late-planted corn and soybean crops, while additional showers may develop later in the six to 10 day forecast, Commodity Weather Group said today. In Brazil, rain this week will mostly be in northern areas and may expand into central regions next week, it said. Soybean planting was 66 percent complete in Argentina, the Buenos Aires Grains Exchange said Dec. 12. Most Brazilian farmers finished sowing, according to researcher AgRural.

"Argentina remains a little on the warm side, but this is somewhat normal and rains remain in the extended forecast," Matt Ammermann, a risk management consultant with INTL FCStone, said in an e-mailed report today. "Long-lasting dryness seems unlikely, but of course remains the primary risk. Central and northern Brazil continue to receive adequate rains."

Soybeans for March delivery fell 0.4 percent to $13.195 a bushel by 6:34 a.m. on the Chicago Board of Trade. Futures rose 1 percent in the previous two sessions. The most-active contract is down 6.4 percent this year. Brazil is the world’s biggest exporter, while Argentina ranks third, after the U.S.

Soybean planting in Brazil and Argentina will top records this season at 29.9 million hectares (73.9 million acres) and 20.5 million hectares, respectively, Hamburg-based Oil World said Dec. 10. Brazil’s harvest may reach an all-time high of 88 million metric tons, while Argentina will produce 54.5 million tons, according to the U.S. Department of Agriculture.




Corn for March delivery declined 0.1 percent to $4.2275 a bushel after sliding 3.6 percent the prior three sessions. Chinese officials found more shipments containing an unapproved genetically modified variety, the General Administration of Quality Supervision, Inspection and Quarantine said in a statement today without providing figures. China previously rejected 180,000 tons of insect-resistant corn from the U.S. because the variety was still undergoing a safety review.

Wheat for March delivery was little changed at $6.2225 a bushel in Chicago, after touching $6.21 a bushel. That matched yesterday’s intraday low, the cheapest price for a most-active contract in 18 months. In Paris, milling wheat for March delivery dropped 0.5 percent to 203 euros ($279.27) a ton on NYSE Liffe.

Egypt, the world’s top wheat importer, is seeking to buy at least 60,000 tons in a tender today, according to the General Authority for Supply Commodities. The state-run buyer received offers of supplies from the U.S., France, Romania, Russia and Germany, according to two traders involved with the tender who aren’t authorized to speak with the media.



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