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Soybean, corn futures decline on beneficial U.S. weather

Published 08/19/2014, 07:32 AM
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Investing.com - U.S. soybean and corn futures edged lower on Tuesday, as near-ideal crop weather in the U.S. Midwest bolstered expectations for a big harvest this autumn.

Northern and eastern areas of the Midwest may see as much as 3 inches, or 7.6 centimeters of rain in the next seven days, improving prospects for production that the government predicts will rise to a record.

On the Chicago Mercantile Exchange, U.S. soybeans for November delivery dipped 0.64%, or 6.6 cents, to trade at $10.5100 a bushel during U.S. morning hours.

Prices of the oilseed hit $10.3860 on August 14, the lowest since October 2010, as ongoing expectations for a record U.S. harvest weighed.

Soybean traders piled on to bearish bets after the U.S. Department of Agriculture estimated this fall's U.S. harvest would reach an all-time high of 3.82 billion bushels on August 12.

Meanwhile, U.S. corn for December delivery shed 0.61%, or 2.2 cents, to trade at $3.6920 a bushel.

Prices fell to a four-year low of $3.4800 a bushel on August 12 after the USDA estimated the corn harvest at 14.03 billion bushels, which would break last year's record of 13.93 billion.

The agency also said it expected average corn yields of 167.4 bushels per acre, above an all-time high of 164.7 in 2009.

Elsewhere on the CBOT, U.S. wheat for December delivery lost 0.72%, or 4.0 cents, to trade at $5.5020 a bushel.

A day earlier, wheat prices dropped 1.64%, or 9.2 cents, to end at $5.5420 as receding concerns over tensions between Ukraine and Russia eased fears over a disruption to supplies from the region.

Corn is the biggest U.S. crop, followed by soybeans, government figures show. Wheat was fourth, behind hay.

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