Monday 23 September 2013

Soybeans Trade Near One-Month Low as U.S. Crop Prospects Improve

By Ranjeetha Pakiam - Sep 23, 2013
Bloomberg
Soybeans traded near the lowest level in a month on speculation that the U.S. harvest will show better-than-expected yields as the weather improves across the Midwest. Corn fell for a second day.

The contract for November delivery declined as much as 0.6 percent to $13.0775 a bushel on the Chicago Board of Trade, the lowest level for the most-active contract since Aug. 23, before trading at $13.145 at 2:05 p.m. in Singapore. Futures dropped 4.8 percent last week.

Soybeans rallied for six straight weeks through Sept. 13 as crop conditions in the Midwest deteriorated amid hot, dry weather, U.S. Department of Agriculture data show. Drier weather expected over the next seven days will favor mature crops and harvests in the region, DTN said in a report on Sept. 20. There are no significant cold-weather threats, the forecaster said.

“The U.S. soybean harvest has commenced and the early yield results seem to be holding up better than expected,” Luke Mathews, a commodity strategist at Commonwealth Bank of Australia (CBA), said in a report today. “The oilseed market will be torn between mounting U.S. harvest pressure, changing production estimates and strong export sales results.”

While the USDA lowered its domestic harvest estimate to 3.149 billion bushels this month, that’s still 4.4 percent more than last year’s drought-curbed harvest. Soybean output in India is seen at 11.6 million to 11.8 million tons in 2013-2014, from 10.6 million tons a year earlier, Vijay Data, president of the Solvent Extractors’ Association of India, said Sept. 20.

Corn for December delivery retreated as much as 0.6 percent to $4.485 a bushel in Chicago, the lowest level since Aug. 14, and was at $4.495. Wheat for delivery in December gained 0.3 percent to $6.4825 a bushel.

No comments:

Post a Comment