Soybeans, Corn Drop as South American Production Rises
Soybeans fell to the lowest in a month and corn dropped on speculation that rains will boost crops in South America, reducing demand for U.S. supplies.
Rains in the next two weeks will benefit crops that farmers are finishing planting in Brazil and Argentina, the world’s biggest producers after the U.S., World Weather Inc. said. Brazil will export more soybeans than the U.S. for the first time ever this year, the Department of Agriculture said yesterday. China’s imports of the oilseed fell 7.1 percent to 3.81 million metric tons in October, government data show.
“There is no compelling story for the bulls right now in soybeans with weather improving crops in South America and China slowing purchases,” Tim Emslie, the research director for Country Hedging Inc. in Inver Grove Heights, Minnesota, said in a telephone interview. “Rains will also aid corn.”
Soybean futures for January delivery fell 1.5 percent to close at $11.675 a bushel at 1:15 p.m. on the Chicago Board of Trade. Earlier, the price touched $11.67, the lowest since Oct. 10. The price has declined 17 percent this year.
Corn futures for December delivery dropped 1.6 percent to $6.455 a bushel on the CBOT, heading for the first weekly drop since the end of September. Yesterday, the price touched $6.66, the highest since Sept. 27.
U.S. exporters sold 251,858 tons of corn in the week ended Nov. 3, down 56 percent from a year earlier, the USDA said today. Export sales of soybeans fell 25 percent from a year earlier, government data show.
“Soybeans sales are slow, and we will need to see an improvement at these lower prices to reverse the downtrend,” Emslie said.
Last year, the U.S. was the largest exporter of both crops. Corn is the biggest U.S. crop, valued at $66.7 billion in 2010, followed by soybeans at $38.9 billion, USDA data show.