By Luzi Ann Javier - Sep 6, 2012
Bloomberg
Soybeans fell for a second day, declining to the lowest level in more than a week, on signs the drought-hit crop in the U.S., the world’s largest grower last year, could be bigger than a government forecast.
November-delivery soybeans declined as much as 1.3 percent to $17.255 a bushel on the Chicago Board of Trade, the lowest price since Aug. 29, and were at $17.365 at 2:26 p.m. Singapore time. Futures, which reached a record $17.89 on Sept. 4, are up about 44 percent this year on concern the worst U.S. drought in half a century will cut global supply.
Soybean output in the U.S. will probably reach 2.739 billion bushels in the year that began this month, INTL FCStone Inc. said in a report yesterday. That’s bigger than the 2.692 billion estimated by the U.S. Department of Agriculture last month. Production last year was 3.056 billion. The premiums companies were paying for soybeans at major shipping terminals fell as much as 25.75 cents a bushel on Sept. 4, according to the USDA, a sign farmers may be increasing sales.
“The supply situation perhaps is not directly in line with the hysteria,” said Mike Darby, a former agricultural specialist at the USDA who now runs Mike Darby International Pty. Ltd. Australia, an agriculture consulting company. “Traders said they’re not having any problems booking soybeans or corn.”
Production of corn will fall to 10.607 billion bushels, New York-based INTL FCStone. On Aug. 10, the USDA forecast 10.779 billion. Last year, output was 12.358 billion.
Corn for December delivery gained 0.2 percent to $7.925 a bushel. The most-active contract reached an all-time high of $8.49 a bushel on Aug. 10. Wheat for December delivery advanced 0.6 percent to $8.725 a bushel.
In China, the world’s second-largest corn user and biggest buyer of soybeans, production of animal feed will probably rise between 8 million to 10 million metric tons a year, Liu Xiaoyu, a vice president of the feed division of Cofco Corp., said at a conference in Shanghai.
Imports of feed ingredients such as corn, feed wheat and soybeans will rise due to limited output, he said.
Bloomberg
Soybeans fell for a second day, declining to the lowest level in more than a week, on signs the drought-hit crop in the U.S., the world’s largest grower last year, could be bigger than a government forecast.
November-delivery soybeans declined as much as 1.3 percent to $17.255 a bushel on the Chicago Board of Trade, the lowest price since Aug. 29, and were at $17.365 at 2:26 p.m. Singapore time. Futures, which reached a record $17.89 on Sept. 4, are up about 44 percent this year on concern the worst U.S. drought in half a century will cut global supply.
Soybean output in the U.S. will probably reach 2.739 billion bushels in the year that began this month, INTL FCStone Inc. said in a report yesterday. That’s bigger than the 2.692 billion estimated by the U.S. Department of Agriculture last month. Production last year was 3.056 billion. The premiums companies were paying for soybeans at major shipping terminals fell as much as 25.75 cents a bushel on Sept. 4, according to the USDA, a sign farmers may be increasing sales.
“The supply situation perhaps is not directly in line with the hysteria,” said Mike Darby, a former agricultural specialist at the USDA who now runs Mike Darby International Pty. Ltd. Australia, an agriculture consulting company. “Traders said they’re not having any problems booking soybeans or corn.”
Production of corn will fall to 10.607 billion bushels, New York-based INTL FCStone. On Aug. 10, the USDA forecast 10.779 billion. Last year, output was 12.358 billion.
Corn for December delivery gained 0.2 percent to $7.925 a bushel. The most-active contract reached an all-time high of $8.49 a bushel on Aug. 10. Wheat for December delivery advanced 0.6 percent to $8.725 a bushel.
In China, the world’s second-largest corn user and biggest buyer of soybeans, production of animal feed will probably rise between 8 million to 10 million metric tons a year, Liu Xiaoyu, a vice president of the feed division of Cofco Corp., said at a conference in Shanghai.
Imports of feed ingredients such as corn, feed wheat and soybeans will rise due to limited output, he said.
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