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U.S. soybeans bounce off 4-year low in early trade

Published 08/13/2014, 06:10 AM
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Investing.com - U.S. soybean futures regained strength on Wednesday, one day after falling sharply following the release of the U.S. Department of Agriculture’s closely-watched monthly crop supply and demand report.

On the Chicago Mercantile Exchange, U.S. soybeans for November delivery tacked on 0.24%, or 2.4 cents, to trade at $10.6200 a bushel during U.S. morning hours.

A day earlier, prices of the oilseed fell to $10.4400, the lowest since October 2010, after the USDA said this year's crop would be by far the largest in history.

The USDA estimated this fall's U.S. harvest would reach an all-time high of 3.82 billion bushels, broadly in line with expectations. The agency also said soybean yields would hit a record 45.4 bushels an acre.

Meanwhile, U.S. corn for December delivery fell inched up 0.14%, or 0.4 cents, to trade at $3.6940 a bushel.

The December corn contract fell to $3.5800 a bushel on Tuesday, before turning 0.2% higher to settle at $3.6900 after the USDA’s output and yield forecasts came in below analyst expectations.

The USDA estimated the corn harvest at 14.03 billion bushels, which would break last year's record of 13.93 billion. However, the number trailed forecasts of 14.25 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 but below expectations of 170 bushels an acre.

Elsewhere on the CBOT, U.S. wheat for September delivery rose 0.79%, or 4.2 cents, to trade at $5.4220 a bushel. .

A day earlier, wheat prices lost 1.56%, or 8.4 cents, to end at $5.3800 a bushel after the USDA raised its outlook for global stockpiles at the end of the 2014-15 season that ends next May 31.

The USDA said global inventories of wheat at the end of the 2014-15 season will total 192.96 million metric tons, above estimates of 189.89 million tons.

Prices of the grain fell to a four-year low of $5.1840 a bushel on July 29, as harvest progress in the northern hemisphere underlined the view of ample global supplies.

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

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