Soybeans slump on S.A. improvements
U.S. soybean futures fell Monday, pressured by improving expectations for crops in the U.S. and South America.
Chicago Board of Trade November soybean futures, thinly traded ahead of the contract's expiration on Nov. 14, fell 22 3/4 cents or 1.5% to $15.04 1/4 a bushel, a more than two-week low.
Most-active January soybeans fell 23 1/2 cents or 1.5% to $15.03 1/4 a bushel.
Traders said market participants sold futures to exit bets on higher prices Monday, ahead of a U.S. Department of Agriculture report Friday expected to include a higher estimated yield for the U.S. soybean crop. A higher yield would somewhat ease concerns about tight supplies of soybeans after severe drought widely damaged U.S. crops over the summer.
- See how Monday's trade unfolded in Marketing Talk
- See the view from the Options pit
- More on South America: Rainfall worries stoke S.A. crop worries
Analysts polled by Dow Jones poll on average expect the USDA will forecast a national soybean yield of 38.2 bushels an acre, up from its forecast of 37.8 last month, as U.S. soy crops benefited from rains late in their growing season.
Traders on Monday also focused on forecasts for rain in Brazil, where dryness in some regions had raised concerns that soybean plantings could be delayed. Now, two to five inches of rain could fall over the next 10 days in parts of center-south and center-west Brazil, including the state of Mato Grosso, said Drew Lerner, president of forecaster World Weather Inc.
Traders also expect rain in Argentina in coming days to benefit soy crops early in the growing season there.
The combination of factors led some market participants to sell soybean futures to exit bets on higher prices, traders said. Front-month soybean futures hit an all-time closing high of $17.71 a bushel two months ago due to droughts in the U.S. and, earlier in the year, in South America.
Wheat futures rose slightly on worries about parched soil in the U.S. southern Plains region as a new winter wheat crop grows there. Little rain is forecast in the next five days in states such as Kansas and Oklahoma, and traders expect the USDA on Monday afternoon to report lower condition ratings than last week for the crop.
CBOT December wheat rose 1 1/2 cents or 0.2% to $8.66 a bushel. KCBT December wheat rose 1/4 cent to $9.09 a bushel. MGEX December wheat fell 1/4 cent to $9.40 a bushel.
Corn futures fell moderately, weighed on by lower soybean prices, with steeper losses prevented by higher wheat prices. Traders also remain concerned about weak export demand for U.S. corn supplies.
December corn futures fell 4 cents or 0.5% to $7.35 1/2 a bushel.
Write to Owen Fletcher at firstname.lastname@example.org.
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(END) Dow Jones Newswires
November 05, 2012 15:44 ET (20:44 GMT)
DJ U.S. GRAIN AND SOY REVIEW: Soy Falls on Better Crop Expectations->copyright