Investing.com – Soybean futures dropped to two-week low on Tuesday, extending sharp losses from the previous session after the U.S. Department of Agriculture unexpectedly raised its forecast for U.S. soybean production.
On the Chicago Mercantile Exchange, soybean futures for November delivery traded at USD13.8850 a bushel during European morning trade, dropping 0.83%.
It earlier fell as much as 1.11% to trade at USD13.8262 a bushel, the lowest price since August 26.
The USDA said in its World Agricultural Supply and Demand Estimates report published Monday that it now expected U.S. soybean supplies in the 2011-12 season to total 3.085 billion bushels, up 0.95% from last month’s estimate of 3.056 billion bushels.
Analysts had expected the USDA to lower its U.S. soybean crop outlook by 1% to 3.03 billion bushels.
The USDA also raised its estimate of U.S. soybean bushels per acre to 41.4 bushels, which contrasted with expectations for a drop to 40.5 bushels per acre.
The yield forecast for Nebraska, the third-largest U.S. soybean growing state, was raised to a record 55.0 bushels per acre.
U.S. soybean stocks are projected to total 165 million bushels at the end of the 2011-12 marketing season compared to a previous estimate of 155 million, as “higher supplies are only partly offset by increased exports," the USDA said.
The U.S. is both the world’s largest soybean producing nation and the world’s largest exporter of the grain.
Elsewhere on the Chicago Mercantile Exchange, corn for December delivery shed 0.27% to trade at USD7.4213 a bushel, while wheat for December delivery fell 0.6% to trade at USD7.2300 a bushel.
U.S. corn farmers are now expected to produce 12.497 billion bushels of corn, a 417 million bushel drop from the USDA’s August forecast, as hot and dry summer weather damaged crops in the U.S. Great Plains.
The USDA left its forecast for wheat production unchanged at 2.077 billion bushels, but raised its 2011-12 marketing year ending stocks forecast to 761 million bushels, up from the August prediction of 671 million bushels.
On the Chicago Mercantile Exchange, soybean futures for November delivery traded at USD13.8850 a bushel during European morning trade, dropping 0.83%.
It earlier fell as much as 1.11% to trade at USD13.8262 a bushel, the lowest price since August 26.
The USDA said in its World Agricultural Supply and Demand Estimates report published Monday that it now expected U.S. soybean supplies in the 2011-12 season to total 3.085 billion bushels, up 0.95% from last month’s estimate of 3.056 billion bushels.
Analysts had expected the USDA to lower its U.S. soybean crop outlook by 1% to 3.03 billion bushels.
The USDA also raised its estimate of U.S. soybean bushels per acre to 41.4 bushels, which contrasted with expectations for a drop to 40.5 bushels per acre.
The yield forecast for Nebraska, the third-largest U.S. soybean growing state, was raised to a record 55.0 bushels per acre.
U.S. soybean stocks are projected to total 165 million bushels at the end of the 2011-12 marketing season compared to a previous estimate of 155 million, as “higher supplies are only partly offset by increased exports," the USDA said.
The U.S. is both the world’s largest soybean producing nation and the world’s largest exporter of the grain.
Elsewhere on the Chicago Mercantile Exchange, corn for December delivery shed 0.27% to trade at USD7.4213 a bushel, while wheat for December delivery fell 0.6% to trade at USD7.2300 a bushel.
U.S. corn farmers are now expected to produce 12.497 billion bushels of corn, a 417 million bushel drop from the USDA’s August forecast, as hot and dry summer weather damaged crops in the U.S. Great Plains.
The USDA left its forecast for wheat production unchanged at 2.077 billion bushels, but raised its 2011-12 marketing year ending stocks forecast to 761 million bushels, up from the August prediction of 671 million bushels.