Soybeans surge, wheat dips Monday
Wheat fell for the first time in three sessions as favorable weather in the U.S. southern Plains improves prospects for winter crops now being planted, and on speculation that Argentina's crop will be bigger than previously forecast. Corn and soybeans gained.
About a half-inch of rain fell Saturday and Sunday in parts of Kansas and Oklahoma, the biggest U.S. producers of winter wheat, adding to adequate soil moisture for recently seeded plants, forecaster DTN said in a report Monday.
Argentina's government, which has forecast wheat production this year at 8.8 million metric tons, may increase its output estimate, said Doug Bergman, the vice president of agricultural derivatives at brokerage RCM Asset Management in Chicago. The U.S. Department of Agriculture has pegged Argentina wheat production at 12 million tons.
"Argentina is admitting they miscalculated their crop," said Tom Leffler, the owner of brokerage Leffler Commodities in Augusta, Kan. In the U.S., "I have clients who've said they're having the best planting season they've had in years. Sure, you have isolated areas that are having problems, but overall, it sounds good."
Wheat futures for December delivery on the Chicago Board of Trade fell six cents, or 0.9%, to $6.99 3/4 a bushel. The price on Friday closed at its highest level since June 19.
Soybean and corn futures gained on speculation that light rains in the U.S. Midwest will further delay harvest of both crops, already behind normal due to late planting in the spring. Collection of the oilseed is seen at about 66% done in the U.S., behind the five-year average of 71%, said Sterling Smith, a futures specialist at Citibank in Chicago.
Soybean futures for December delivery on the CBOT rose 12 cents, or 0.9%, to $13.03 1/4 a bushel. Corn for December delivery rose 2 1/2 cents, or 0.6%, to $4.44 a bushel in Chicago.
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(END) Dow Jones Newswires
October 21, 2013 15:40 ET (19:40 GMT)
DJ Wheat Falls on U.S. Rain, Argentina Output Gains -- Update->copyright