Soybeans declined for a second day on expectations that rain forecast for the Midwest will help ease crop stress in the biggest U.S. growing region.
Futures surged 13 percent last month as hot weather in the Midwest hurt crops, boosting speculation the U.S. Department of Agriculture will lower its domestic production estimate on Sept. 12. Rains are expected to increase across the northwestern Midwest during the next six to 10 days, improving conditions for soybeans, MDA Information Systems LLC said yesterday.
Wetter weather forecast in the U.S. for this weekend will probably reduce the stress on the soybean crop, Paul Deane, an agricultural economist at Australia & New Zealand Banking Group Ltd., wrote in a note.
Soybeans for November delivery dropped 0.6 percent to $13.4825 a bushel by 3:24 a.m. on the Chicago Board of Trade. Prices fell 4.4 percent this year.
About 52 percent of the U.S. soybean crop was rated in good or excellent condition as of Sept. 8, the USDA said yesterday. While that is down from 54 percent a week earlier, it compares with 32 percent a year prior, the agency’s data show. About 54 percent of the corn crop was rated good or excellent from 56 percent a week earlier, the USDA said.
Corn for December delivery declined 0.1 percent to $4.63 a bushel, retreating for a second day. Wheat for delivery in December gained 0.4 percent to $6.44 a bushel.
Australian farmers will harvest 24.5 million metric tons of wheat in 2013-2014 from 25.4 million tons estimated in June, the Australian Bureau of Agricultural and Resource Economics and Sciences said today.