Trade sends soybeans lower on rainfall
Soybean futures Monday fell to the lowest closing price in more than five weeks as rainfall last week helped stabilize yields ahead of the harvest in the U.S., the world's second-biggest exporter of the oilseed behind Brazil. Corn and wheat futures gained.
As much as six times the normal amount of precipitation fell in the past seven days in parts of Iowa and Illinois, the biggest U.S. growers of soybeans and corn, according to the National Weather Service. That may stabilize yields that had been declining because of dry weather from early August through mid-September, Rich Feltes, director of research at brokerage RJ O'Brien in Chicago, said in a report Monday.
Collection of soybeans that take less time to mature and crops in southern regions of the U.S. has started, with yields coming in better than expected, especially in parts of Ohio and Indiana, Mr. Feltes said. Soybean futures have dropped three straight sessions.
"We're going through the harvest, so maybe there's some delayed harvest pressure," said Jon Marcus, president at Lakefront Futures & Options LLC in Chicago. "A lot of it is technical. Under $13.30 a bushel there's been no support."
Chicago Board of Trade soybeans for November delivery fell 7 1/2 cents, or 0.6%, to $13.07 3/4 a bushel, the lowest closing price since Aug. 16.
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Corn prices rebounded after touching a three-year low Monday. December futures at the CBOT rose 2 1/4 cents, or 0.5%, to $4.53 1/4 a bushel. Prices earlier fell to $4.48 1/4 a bushel, marking the lowest intraday price for a front-month contract since September 2010.
Wheat futures gained on signs of improved demand for U.S. inventories from overseas buyers. Exporters shipped 11.1 million metric tons from the start of the marketing year on June 1 through Sept. 12, up 36% from the same period a year earlier, according to the U.S. Department of Agriculture. Importers have committed to purchase 17.1 million tons, up 38% from a year earlier, the government said Thursday.
CBOT December wheat added 7 1/4 cents, or 1.1%, to $6.53 1/2 a bushel.
"Our weekly export sales numbers have been decent," said Larry Glenn, an analyst at Frontier Ag in Quinter, Kan. "We haven't been getting the big sales, but they're coming to us to buy quality wheat. That's what's holding the support."
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(END) Dow Jones Newswires
September 23, 2013 15:16 ET (19:16 GMT)
DJ Soybeans Slip to Lowest Close in Five Weeks; Corn, Wheat Advance -- Update->copyright
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