Dec. 6 (Bloomberg) -- Soybeans fell for a fourth time this week on speculation that rain will boost early crop development in Brazil and Argentina, reducing demand for U.S. supplies. Wheat dropped, while corn was little changed.
Widespread precipitation in the next week will eliminate moisture deficits for most of the remaining 15 percent of dry soils in Brazil, Commodity Weather Group LLC said in a report today. Warmer, drier weather after weekend rain should firm soils for increased planting in Argentina, the forecaster said. Brazil may produce a record 89.5 million metric tons of soybeans when harvesting begins in January, up from 82.1 million this year, consultant Safras e Mercado said today.
“Markets are on the defensive because weather conditions are conducive for early crop development in South America,” Jerry Gidel, the chief feed-grain analyst for Rice Dairy LLC in Chicago, said in a telephone interview. “People are worried that U.S. exports may slow.”
Soybean futures for delivery in January retreated 0.5 percent to $13.2175 a bushel at 11:11 a.m. on the Chicago Board of Trade. A close at that price will extend the weekly drop to 1.1 percent, the first decline in three weeks.
Wheat futures for March delivery fell 0.3 percent to $6.5025 a bushel, heading for the first weekly slide since Nov. 8.
Global inventories before next year’s Northern Hemisphere harvest may reach 179.98 million tons, larger than the USDA prediction of 178.48 million tons in November, a Bloomberg survey showed.
Corn futures for March delivery slipped 0.1 percent to $4.33 a bushel. The grain is headed for the first weekly gain in three after domestic livestock and ethanol producers increased purchases.
Exporters sold 593,642 tons of corn in the week ended Nov. 28, down 41 percent from a week earlier, while soybean sales fell 43 percent to 805,241 tons, the U.S. Department of Agriculture said in a report yesterday.
--With assistance from Ranjeetha Pakiam in Kuala Lumpur and Whitney McFerron in London. Editors: Thomas Galatola, Millie Munshi