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Grains slide on harvest progress

09/24/2012 @ 4:07pm

U.S. soybean futures fell Monday as speculative market participants sold futures due to an influx of supplies from the U.S. soy harvest, as some farmers report better yields than expected.

Soybeans for November delivery at the Chicago Board of Trade settled down 11 3/4 cents, or 0.7%, at $16.10 a bushel.

As the U.S. soybean harvest progresses, some farmers are reporting better production than expected. In some northern parts of the Corn Belt, yields from 10 to 15 bushels per acre above estimates "are not uncommon," said Karl Setzer, an analyst with MaxYield Cooperative.

Weakness on technical charts also fueled selling of soybeans, though futures recovered from their intraday low thanks to technical support in the area of $15.80 to $15.90 a bushel, traders said. Losses in palm oil futures overnight in Asia pressured soybean futures as well, traders said.

Some traders said futures could continue to fall since managed funds, which hold a very large net position betting on higher soybean prices, may continue to exit those bets.

"It's still predisposed to go down," said Linn Group analyst Roy Huckabay. "We just haven't liquidated enough."

Soybeans, along with corn and wheat futures, were also pressured Monday by weak outside markets amid renewed concerns about Europe's sovereign debt woes. The dollar was stronger Monday, while crude oil and gold were lower.

Corn futures drew pressure from an influx of supplies amid the ongoing U.S. harvest. Wheat futures followed corn and soybeans lower, as traders also weighed uncertainty about how much wheat Russia will continue to export.

Some traders this week are also exiting bets on grain prices to reduce risk ahead of the U.S. Department of Agriculture's quarterly grain inventories report, due Friday morning.

December corn futures settled down 3 1/2 cents, or 0.5%, at $7.44 3/4 a bushel.

CBOT December wheat fell 5 1/4 cents, or 0.6%, to $8.92 a bushel. Kansas City Board of Trade December wheat fell 13 cents, or 1.4%, to $9.13 1/4 a bushel. MGEX December wheat fell 7 1/4 cents, or 0.8%, to $9.50 1/2 a bushel.

Write to Owen Fletcher at owen.fletcher@dowjones.com
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(END) Dow Jones Newswires
September 24, 2012 15:48 ET (19:48 GMT)
DJ U.S. GRAIN AND SOY REVIEW: Soybeans Fall; Good Harvest Reports->copyright

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