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Soybeans Close Lower Wednesday on Rain in South America

Futures Fall as Wet Weather Boosts Crops in Argentina, Brazil.

Soybeans closed modestly lower Wednesday as rain in parts of Brazil and Argentina boosts crop prospects in South America. 

Rainfall was reported in several corn- and soybean-growing regions in Argentina recently, offsetting warm weather in the country, Commodity Weather Group said in a report. Wet weather in Brazil is helping coffee, and scattered precipitation will help corn and soybeans, the forecaster said.

Scattered showers were reported in central and northeast Cordoba, Santa Fe, and southern and western Entre Rios, all major soybean growing areas in Argentina, according to CWG. Precipitation in Brazil was also scattered in the center-west corn and soybean growing regions.

Large Argentinian and Brazilian soybean and corn crops would add to the global glut after U.S. producers harvested what’s expected by the Department of Agriculture to be the largest crops in history.

The Department of Agriculture last week left its forecast for both corn and soybean production unchanged at record highs. Corn output is pegged at 15.2 billion bushels on yields of 175.3 bushels an acre, while growers are expected to harvest 4.36 billion bushels of soybeans on yields of 52.5 bushels an acre, according to the USDA. 

Soybeans for January delivery closed down 3¼¢ to $10.24¾ a bushel on the Chicago Board of Trade. Soy meal futures for December delivery lost $1.60 to $313.50 a short ton, and soy oil rose 0.14¢ to 36.92¢ a pound. 

Corn futures for March rose ¾¢ to $3.61¾ a bushel in Chicago.

Wheat futures for March delivery rose ¾¢ to $4.18¼ a bushel in Chicago. Kansas City wheat rose 4¼¢ cents to $4.19½ a bushel, rising as the risk of winterkill in the southern Plains threatens the hard-red winter crop. 

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