Soybeans Decline as Rain in Brazil Benefits Crops
Soybeans and corn declined Monday on fears that South American producers will increase output as rain falls. Wheat was little changed in choppy trading.
Brazil is forecast by the U.S. Department of Agriculture to produce 100 million metric tons of soybeans in the current marketing year, a record for the South American country, making it the second-largest producer of the oilseeds. Its exports are expected to rise 13% to 57 million tons while U.S. shipments are forecast by the USDA to fall 7% to about 47 million tons.
Rain fell over the weekend, and more is expected in Mato Grosso, the biggest producer in Brazil, according to forecasters.
While it probably won't be enough to totally offset recent dry weather, the precipitation allays fears that yields will be substantially reduced.
Soybean futures for March delivery declined 10 cents to $8.63 on the Chicago Board of Trade. Soymeal for March delivery fell $1.60 to $269.30 per short ton. Soyoil lost 0.62 cent to 30.48 cents a pound.
Corn futures for March delivery lost 3 1/2 cents to $3.61 a bushel in Chicago.
Wheat futures on the Chicago Board of Trade unchanged at $4.67 1/2 a bushel, and Kansas City wheat futures declined 1/2 cent to $4.67 a bushel.
In the outside markets, the Dow Jones Industrial Average declined 0.2% and the S&P 500 lost 0.4%. West Texas Intermediate crude plunged 3.5% while Brent futures lost 3.2%. Natural gas jumped 9.5% as cold weather finally takes hold in much of the country.