Soybeans Close Almost 9¢ Lower Wednesday
Corn and soybeans fell Wednesday on speculation that farmers will wrap up the harvest earlier than normal thanks to persistent dry weather and amid some negative trade news.
Harvest pace is already ahead of the five-year average, the U.S. Department of Agriculture said in a Monday report. About 75% of the U.S. corn crop was harvested as of Sunday, topping the average of 68% for this week and well ahead of the 59% that was collected at this time a year ago.
Soybeans were 87% collected, ahead of the five-year average of 80% and last year’s 77%, according to the USDA.
Dry weather the past 30 days has allowed farmers to collect their crops faster than they normally would. Some rain is expected in the eastern Corn Belt this week, but central and western parts of the region remain dry, according to the National Weather Service.
Farmers are reportedly locking up corn and beans, hoping to get better prices in the future, which should be boosting futures. Still, a lack of export demand during harvest is never positive for prices.
The weekly export sales report comes out tomorrow and is expected to show strong demand for beans, though not as strong as prior weeks, Dan Hueber, the president of The Hueber Report, said in a report today.
The export sales report “should be solid for beans once again, albeit not necessarily at the same pace they were a week ago. Without a piece of news that flies in to provide a shock, we expect prices to limp sideways through the balance of the week.”
Corn futures for December delivery dropped 3 ¼ cents to $3.76 ¾ a bushel Wednesday on the Chicago Board of Trade.
Prices received another downward push on reports that a shipment of Brazilian corn is on its way to the U.S. as the weak real combined with the strong dollar is making goods – including agricultural products – from the South American country attractive to buyers all over the world.
Reuters reported that a shipment of about 54,000 metric tons of Brazilian corn was headed to the U.S.
Soybean futures for November delivery declined 8 ¾ cents to $8.82 ¼ a bushel in Chicago. December soymeal fell $4.70 to $300 a short ton, while soyoil gained 0.15 cent to 28.04 cents a pound.
Wheat futures declined 2 ¾ cents to $5.05 ½ a bushel on the CBOT.
In the outside markets, December crude oil futures gained $2.66 to $45.86 a barrel. Brent crude oil prices rose to $47.11 a barrel.
The Dow Jones Industrial Average gained 36 points, or about 0.2%, in late-day trading.