Soybeans fell for a second day in Chicago, narrowing a monthly gain, as predictions for rain in parts of the U.S. Midwest eased concern that heat and dryness may hurt yields. Corn declined.
Areas of Indiana and Ohio may see 1" of rain through Sept. 2, while moisture will be less further west, National Weather Service data show. Much of the central and northern Midwest, including areas of top producers Iowa and Illinois, had less than half of the normal amount of rain in the past 60 days, according to the forecaster. Corn and soybeans rallied to records in Chicago last year amid the worst drought since the 1930s.
"Forecasts of impending rain are helping the outlook for soybean yields at the moment, but how beneficial the rains would be is still open to question," said Joyce Liu, an investment analyst at Phillip Futures Pte in Singapore. "Investors are still haunted by lingering memories of last year’s drought."
Soybeans for delivery in November slid 1.1 percent to $13.535 a bushel by 7:18 a.m. on the Chicago Board of Trade. The oilseed is still up 12 percent this month, the most since July 2012, on concern crops that were delayed by wet weather earlier this year will be damaged by dry weather now or an early frost in the next few weeks.
Corn for delivery in December fell 1 percent to $4.7675 a bushel, paring this week’s gain to 1.4 percent and leaving the most-active contract little changed this month. U.S. corn crops are more mature than soybeans, leaving the grain at a smaller risk of damage, David Sheppard, a managing director at Gleadell Agriculture Ltd. in Gainsborough, England, said in a report.
Showers in northwest Illinois, Iowa and South Dakota may be too light to result in significant improvement from dry conditions, MDA Weather Services said in a report yesterday. Drought expanded in Iowa and Illinois in the most recent week, the U.S. Drought Monitor said yesterday. Morgan Stanley cut forecasts for corn and soybean yields today.
Wheat for delivery in December was unchanged at $6.5425 a bushel, with the most-active contract heading for a 1.5 percent decline this month. In Paris, milling wheat for delivery in November fell 0.8 percent to 186.75 euros ($247.14) a metric ton on NYSE Liffe.
--With assistance from Chanyaporn Chanjaroen in Singapore. Editors: Sharon Lindores, Dan Weeks
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