Soybeans fell in Chicago as investors weighed the outlook for record U.S. production amid flooding in parts of the Midwest. Wheat headed for a seventh weekly loss.
U.S. farmers may harvest a record 3.635 billion bushels of soybeans this year, the U.S. Department of Agriculture predicts. The Midwest may see rain during the weekend before conditions turn drier later in the week, Commodity Weather Group said in a report today. Seventy-two percent of crops in the main U.S. growing areas were still in good or excellent condition as of June 22, the most on records since 1986, USDA data show.
"Outlook for the developing soybean crop slightly tempered gains," Paul Deane, an analyst at Australia & New Zealand Banking Group Ltd., wrote in a note today. "The 14-day weather outlook is for above-average rainfall near-term through the U.S. Midwest, but followed by drier conditions with slightly higher temperatures."
Soybeans for November delivery dropped 0.4 percent to $12.3975 a bushel at 6:50 a.m. on the Chicago Board of Trade. Prices rose 1.2 percent yesterday, the biggest gain since May 21, as U.S. exports jumped. The oilseed gained 0.7 percent this week.
U.S. farmers probably planted a record 82.21 million acres in soybeans, more than a previous forecast of 81.49 million, a Bloomberg News survey showed. The USDA is set to release its new acreage estimate June 30. Areas of the northern Midwest along the upper Mississippi River have experienced flooding after some areas received 12 inches (30 centimeters) of rain in the past month, according to AccuWeather Inc.
Corn for delivery in December fell 0.3 percent to $4.4175 a bushel, set for a 2.3 percent weekly decline. U.S. planting may total 91.71 million acres, similar to the 91.69 million estimated in March, Bloomberg’s survey showed.
Stockpiles of corn on June 1 may have totaled 3.72 billion bushels, a four-year high, a separate Bloomberg survey showed before the USDA’s quarterly inventory report, which also will be released June 30. Supplies of soybeans may have dropped to 382 million bushels, the lowest for the date since 1977.
Wheat for September delivery rose 0.3 percent to $5.8625 a bushel, paring the drop this week to 1.2 percent, a seventh straight loss in the longest streak since January. In Paris, milling wheat for November delivery declined 0.1 percent to 186.50 euros ($253.99) a metric ton on Euronext.