BLBG:Soybeans Rally From 18-Month Low as Crop May Miss USDA Forecast
Soybeans rebounded from the lowest level in 18 months amid speculation that a U.S. government crop report next week may show a smaller harvest than previously forecast in the world’s largest grower. Corn advanced.
Soybeans for delivery in November climbed as much as 0.4 percent to $11.7225 a bushel on the Chicago Board of Trade and were at $11.695 at 10:48 a.m. in Singapore. Futures touched $11.6525 yesterday, the lowest level for the most-active contract since January 2012.
The oilseed lost 25 percent in the past year as U.S. crops recovered from the worst drought since the 1930s. The harvest will be 3.357 billion bushels this year, less than the previous forecast of 3.42 billion by the U.S. Department of Agriculture, a Bloomberg survey showed. U.S. output may be 3.302 billion bushels, according to Goldman Sachs Group Inc. The government will release the forecasts, based on farmer and field surveys, at noon on Aug. 12 in Washington.
“We could get a clearer picture on the soybean acreage and yield, so we should wait,” said Tetsu Emori, chief fund manager at Astmax Asset Management Inc. in Tokyo. “The market is oversold.” Soybeans’ 14-day relative strength index stayed below 30, a technical signal to some analysts that prices have fallen too fast and are poised to increase.
Corn for December delivery gained as much as 0.7 percent to $4.6225 a bushel in Chicago and traded at $4.61. The price dropped for a fourth day yesterday, declining as low as $4.55, the lowest level since Oct. 4, 2010. Wheat for December delivery was little changed at $6.63 a bushel.
To contact the reporter on this story: Ranjeetha Pakiam in Kuala Lumpur at rpakiam@bloomberg.net
To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net
