Midwest rain sinks grain futures Monday
Soybean futures declined 2.4% on Monday after weekend rains from Nebraska to Illinois soaked fields that have been baked by hot, dry weather since early August.
Corn and wheat prices also finished lower on speculation that the new moisture could lead to bigger harvests in the coming weeks.
More showers are expected this week, forecaster DTN said in a report Monday, but analysts say it is unclear whether the moisture will improve prospects for the soybean crop, which is at a late stage of development. The soybean harvest normally would be underway, but wet weather forced farmers to plant the crop about two weeks later than usual this year.
"Regardless of whether the rain is going to help or not, it's the mentality of the market we're dealing with," said Jason Britt, the president of Central States Commodities in Kansas City, Mo. "It's overcast and cooling down in the Midwest, so regardless of whether it's actually helping, at least it's not hurting. We're right here in front of the harvest so we know we're going to have some new supplies back in the market."
Chicago Board of Trade soybeans for November delivery dropped 33 1/4 cents to $13.48 1/4 a bushel.
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Corn for December delivery declined 2 1/2 cents, or 0.5%, to $4.56 1/2 a bushel. The soybean crop has been hit harder by the dry weather because oilseeds have a later growing season than corn.
Wheat futures fell late in the trading session, following corn prices lower as the two compete as livestock feed. The price was higher most of the day after the government said inspections of the grain for export in the week ended Thursday rose 45% to 46 million bushels from the prior seven days.
CBOT December wheat, the most-active contract, fell 1/4 cent, or 0.04%, to $6.41 1/4 a bushel.
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(END) Dow Jones Newswires
September 16, 2013 15:51 ET (19:51 GMT)
DJ Soybeans Decline as Rain Falls in Midwest; Corn, Wheat Drop->copyright
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