Soybeans Extend Slump on USDA Data as Corn Drops to 5-Month Low
Soybeans extended the biggest slump in five years to the lowest level since 2012 after a U.S. government report showed farmers will plant record acreage. Corn declined to a five-month low.
Soybeans for November delivery lost as much as 0.6 percent to $11.505 a bushel on the Chicago Board of Trade, the lowest level for a most-active contract since Jan. 12, 2012, before trading at $11.51 by 10:22 a.m. in Singapore. Futures plunged 5.8 percent yesterday for the biggest drop since July 2009.
Seedings in the U.S. will reach 84.839 million acres, up 11 percent from a year earlier, the U.S. Department of Agriculture said in a report yesterday. Inventories on June 1 were 405 million bushels, larger than the 382 million estimated by analysts in a Bloomberg survey. About 72 percent of the crop was rated in good or excellent condition on June 29, up from 67 percent a year earlier, the USDA said in a separate report yesterday. The U.S. is the world’s biggest grower.
“The market is now looking at the conditions of the U.S. crop, which is quite good as well, and started to build in some large expectations for new crop,” Paul Deane, an analyst at Australia & New Zealand Banking Group Ltd., said today by phone from Melbourne.
Corn for December delivery fell as much as 0.9 percent to $4.215 a bushel, the lowest level for a most-active contract since Jan. 21, before trading at $4.225. Prices dropped 4.9 percent yesterday, the biggest decline since June 28, 2013.
Futures tumbled 15 percent in the second quarter, the most since the three months through June 2013, as stockpiles in the U.S. reached 3.854 billion bushels following record production last year, the USDA said. The average estimate of 26 analysts surveyed by Bloomberg was 3.723 billion bushels.
Wheat for September delivery rose 0.5 percent to $5.805 a bushel, rebounding from a 17 percent slump last quarter, the biggest decline since June 2011. Prices dropped 2.7 percent to $5.775 yesterday, the lowest since Feb. 7.
To contact the reporter on this story: Chanyaporn Chanjaroen in cchanjaroen
To contact the editors responsible for this story: Jake Lloyd-Smith at jlloydsmith Ovais Subhani