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U.S. soybeans decline after USDA raises harvest outlook

Published 11/11/2014, 06:05 AM
U.S. soybean futures edge lower after USDA raises harvest outlook
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Investing.com - U.S. soybean futures extended losses from the previous session on Tuesday, after the U.S. Department of Agriculture predicted a record-setting harvest.

On the Chicago Mercantile Exchange, US soybeans for January delivery fell 2.9 cents, or 0.28%, to trade at $10.2250 a bushel during U.S. morning hours.

A day earlier, soybean futures lost 11.0 cents, or 1.06%, to settle at $10.2560 a bushel, after the USDA raised its projections for U.S. production and yields.

The USDA estimated this fall's U.S. harvest would reach an all-time high of 3.958 billion bushels, up from a forecast of 3.927 billion in October.

The government also raised its average yield outlook to 47.5 bushels per acre from 47.1 bushels.

The agency predicted that U.S. soybean stockpiles will total 450 million bushels at the end of the 2014-15 season, unchanged from last month.

Meanwhile, US corn for December delivery traded at $3.6863 a bushel, down 0.57 cents, or 0.16%.

On Monday, corn prices tacked on 1.6 cents, or 0.48%, to close at $3.6920 a bushel after the USDA estimated the U.S. harvest would be smaller than expected, though still the biggest in history.

The USDA forecast the 2014-15 corn harvest at 14.40 billion bushels, down from a projection of 14.47 billion in October.

The agency also said corn yields would reach 173.4 bushels an acre, below last month’s estimate of 174.2 bushels an acre, but still an all-time high.

The USDA expects U.S. corn reserves at the end of the 2014-15 season on August 31 to total 2.008 billion bushels, down from last month’s estimate of 2.081 billion.

Elsewhere on the CBOT, US wheat for December delivery shed 2.77 cents, or 0.54%, to trade at $5.1363 a bushel.

Prices of the grain rose 2.6 cents, or 0.53%, on Monday to end at $5.1720 a bushel after the USDA forecast smaller-than-expected U.S. supplies next year.

U.S. ending stocks were forecast at 644 million bushels, down from a previous estimate of 654 million.

However, the USDA said global inventories of wheat at the end of the 2014-15 season will total 192.9 million metric tons, up from a forecast of 192.59 million projected in October.

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

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