Soybeans Decline as Report Shows U.S. Fields in Good Condition

Jun 24, 2014 3:14 pm ET

June 24 (Bloomberg) -- Soybeans posted the largest loss in four weeks after a government report showed U.S. crops are in mostly good condition even as parts of the country experience excess rainfall. Corn and wheat also fell.

Seventy-two percent of soybean crops in the main U.S. growing areas were rated good or excellent as of June 22, the best for the date in records going back to 1986, the U.S. Department of Agriculture said yesterday. Corn was rated 74 percent in top condition. Prices of both commodities are headed for a second straight monthly drop.

“It’s the same old story here,” Gregg Hunt, an analyst and broker at Archer Financial Services Inc. in Chicago, said in a telephone interview. “We just have excellent growing conditions up to this juncture.”

Soybean futures for delivery in November lost 0.7 percent to close at $12.245 a bushel on the Chicago Board of Trade, the first decline in a week and the biggest drop since May 27.

Corn futures for December delivery fell 0.4 percent to $4.4075 a bushel. Prices tumbled 2.1 percent yesterday, the biggest drop since May 15.

Prices decreased 19 percent in the past year as the USDA predicts U.S. corn production will be a record 13.935 billion bushels in the season starting Sept. 1. Farmers probably planted 91.71 million acres, similar to a government estimate in March, according to a Bloomberg News survey before the USDA releases its new acreage estimate on June 30.

Soybean planting was pegged at 82.21 million acres, up from the March forecast of 81.49 million, analysts said.

Moisture will remain adequate for corn and soy crops in “nearly all areas” the next 15 days, with local flood damage possible in states including Nebraska and Iowa, Bethesda, Maryland-based Commodity Weather Group said today in a report.

Wheat futures for September delivery dropped 1.4 percent to $5.8075 a bushel after touching $5.7925, the lowest for a most- active contract since Feb. 10.

--With assistance from Whitney McFerron in London and Phoebe Sedgman in Melbourne.