Soybeans drift lower on S.A. weather
U.S. soybean future prices fell to a fresh low Thursday, pressured by the potential for large soy crops in South America.
Chicago Board of Trade January soybean futures fell 17 cents or 1.2% to $14.02 a bushel, a five-month closing low for the front-month contract.
The decline comes as soybean traders increasingly turn their focus to the weather in South America and new soybean crops in Brazil and Argentina.
"The South American weather continues to look pretty good," said Aaron Curtis, commodity-risk consultant with MID-CO Commodities Inc. in Bloomington, Ill. "Without any big concern there, I think the market's going to have a little bit of a tough time rallying."
Rain in central Brazilian crop areas is likely to continue for the next three days, according to a morning forecast by Telvent DTN. Scattered showers fell in the Goias and Mato Grosso regions, and more scattered rain is forecast for northern and eastern Mato Grosso and Goias through Saturday.
Argentina's soybean area in the 2012-13 season is likely to reach a record 19.36 million hectares, up from 18.67 million hectares last season, the Agriculture Ministry said in its weekly crop report Thursday.
The forecast is the first for the 2012-13 soy crop from the government and is in line with private forecasts. The Buenos Aires Cereals exchange forecasts a soybean area of 19.7 million hectares this season.
Soybean futures plummeted last Friday after the U.S. government raised its estimate for the size of the U.S. harvest by more than expected. Combined with a positive outlook so far for South America, that news has eased concerns about tight world supplies of the oilseed.
Corn futures fell on lower soybean prices and on worries about weak export demand for U.S. corn. "The export demand for corn has been really dismal here for the last few weeks," Mr. Curtis said. December corn settled down 4 1/2 cents or 0.6% at $7.21 1/4 a bushel.
Lower corn and soybean prices pulled wheat lower as well. Wheat traders are also waiting for exports to pick up, after saying for weeks that dwindling supplies in competing areas including the Black Sea region could boost demand for U.S. wheat.
CBOT December wheat settled down 3 1/4 cents or 0.4% at $8.45 1/2 a bushel, a three-month closing low for the front-month contract. KCBT December wheat fell 3 1/4 cents or 0.4% to $8.86 1/2 a bushel. MGEX December wheat fell 3 1/4 cents or 0.4% to $9.20 1/4 a bushel.
-Shane Romig contributed to this article.
Write to Owen Fletcher at firstname.lastname@example.org
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(END) Dow Jones Newswires
November 15, 2012 15:47 ET (20:47 GMT)
DJ U.S. GRAIN AND SOY REVIEW: Soybeans Fall On South America Crop