Monday 16 September 2013

Soybeans Decline as Rain Seen Aiding Dry Midwest; Corn Retreats

By Phoebe Sedgman - Sep 16, 2013
Bloomberg
Soybeans dropped for a second day on speculation that rain in parts of the Midwest may halt a decline in crop conditions. Corn fell to the lowest level in a month on expectations domestic production will reach a record.

Soybeans for November delivery lost as much as 1.4 percent to $13.62 a bushel on the Chicago Board of Trade and were at $13.64 at 12:07 p.m. in Singapore. Corn for delivery in December dropped as much as 1 percent to $4.545 a bushel, the lowest since Aug. 15, and traded at $4.555.

Soybeans rallied for six straight weeks through Sept. 13, the best run since 2009, as hot and dry weather across the Midwest boosted concern that yields may drop. Rain should return to the region early this week, with more precipitation expected in northwestern areas later in the week, helping to rebuild moisture, MDA Information Systems LLC said on Sept. 13.

“Forecasts for beneficial rain in the U.S. this week weighed on sentiment” for soybeans, Luke Mathews, a commodity strategist at Commonwealth Bank of Australia, wrote in a note. “The market is still coming to terms with the USDA’s surprise upgrade to U.S. corn-production prospects,” he said, referring to the U.S. Department of Agriculture by its initials.

Domestic corn output will rise 28 percent to a record 13.843 billion bushels in 2013, helping send global reserves to a 12-year high, according to the USDA. The local output forecast was revised upward from 13.763 billion bushels on Sept. 12.

Wheat for December delivery declined 0.2 percent to $6.405 a bushel, extending two weeks of losses.

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