BLBG:Soybeans Drop to Lowest Since July on U.S. Harvest, Brazil Rains
Soybeans tumbled to the lowest level in more than two months as an early U.S. harvest and improving weather conditions in South America, the largest growing region, eased supply concerns.
The November-delivery contract lost as much as 0.9 percent to $15.17 a bushel, the lowest price for the most-active contract on the Chicago Board of Trade since July 12. Futures were at $15.185 at 2:10 p.m. Singapore time. Soybeans rose to a record $17.89 last month as the worst drought in half a century was set to cut U.S. output to the smallest in nine years.
Parts of Brazil, Northern Argentina and Uruguay will have moderate to heavy rains this week, maintaining soil moisture, Accuweather.com said in a report yesterday. In the U.S., the largest grower last year, about 41 percent of the crop was harvested as of Sept. 30, compared with 15 percent a year earlier, the Department of Agriculture said Oct. 1.
“We’re seeing continued pressure coming through that market,” Luke Mathews, a commodity strategist at Commonwealth Bank of Australia (CBA), said from Sydney today. “The rapid pace of the soybean harvest, the favorable planting conditions we’re eyeing in South America and the negative influence of a very weak palm-oil complex are weighing on global oilseed prices.”
Palm-oil futures in Malaysia yesterday slumped 8.5 percent to 2,255 ringgit ($736) a metric ton, the lowest close since November 2009. Corn for December delivery today slipped 0.6 percent to $7.535 a bushel in Chicago, while wheat for delivery in the same month fell 0.9 percent to $8.64 a bushel.
To contact the reporter on this story: Luzi Ann Javier in Singapore at ljavier@bloomberg.net
To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net
