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U.S. soybean futures drop to 5-week low on Brazil crop prospects

Published 12/03/2014, 06:44 AM
Soybean futures hit 5-week low amid optimism over Brazil crop prospects
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Investing.com - U.S. soybean and corn futures extended sharp losses from the previous session on Wednesday amid expectations for a bumper crop in major South American producers.

On the Chicago Mercantile Exchange, US soybeans for January delivery hit a session low of $9.8638 a bushel, a level not seen since October 27, before trading at $9.8725 during U.S. morning hours, down 8.75 cents, or 0.88%.

A day earlier, prices of the oilseed lost 21.2 cent, or 2.09%, to settle at $9.9560 a bushel.

Meanwhile, US corn for March delivery traded at $3.7863 a bushel, down 2.38 cents, or 0.62%. Futures fell to $3.7863 earlier, the lowest level since November 21.

On Tuesday, corn tumbled 8.4 cents, or 2.18%, to close at $3.8120 a bushel.

Soybean and corn prices declined after agricultural meteorologists predicted mostly favorable weather across key grain-growing regions in Brazil.

Elsewhere on the CBOT, US wheat for March delivery dipped 5.03 cents, or 0.83%, to trade at $5.9738 a bushel.

A day earlier, US wheat futures rallied to $6.1160 a bushel, the most since June 10, before turning lower to end at $6.0320, down 3.4 cents, or 0.58%.

Wheat prices remained supported near a six-month amid ongoing speculation Russia will limit its exports of the grain in the current marketing season.

Russia, the world's third-largest wheat exporter, has shipped approximately 14 million tons of wheat so far in the 2014-15 marketing season, which started on July 1.

Lower wheat exports from Russia could boost demand for U.S. supplies, which is the world’s biggest exporter of the grain.

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

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