June 25 (Bloomberg) -- Soybeans rose on concerns that excessive rains will reduce acreage as stockpiles decline in the U.S., the world’s biggest grower. Wheat also climbed, while corn fell.
Damage from flooding and hail may cut planted area for corn and soybean by 2 million acres, Michael Cordonnier, the president of Soybean & Corn Advisor Inc. in Hinsdale, Illinois, wrote in a report today. U.S. reserves of the oilseed on June 1 were probably the smallest for that date since 1977, according to a survey of 26 analysts by Bloomberg News.
“We certainly are seeing a little bit of support added to the market from the tightness that we’re seeing in soybeans,” Graydon Chong, an analyst at Rabobank International in Sydney, said in a telephone interview. “In the longer term, we’re quite bearish on soybeans given that we’re looking at having a historically large crop.”
Soybean futures for November delivery rose 0.4 percent to close at $12.29 a bushel at 1:15 p.m. on the Chicago Board of Trade. Prices are headed for a second straight monthly drop on speculation that warm, wet weather has boosted crop development and yield potential outside of areas that are flooded.
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 USDA said. Planting may rise to a record 82.213 million acres, up from the USDA’s March forecast of 81.493 million, based on a Bloomberg survey. The agency will update its outlook on June 30.
“It is likely that the eventual harvested acreage for both corn and soybeans will end up lower than what will be reported in the June planted report,” Cordonnier said. “The impact of the flooding may be more important for the soybeans.”
Wheat futures for delivery in September gained 0.6 percent to $5.8425 a bushel in Chicago.
Corn futures for December delivery slid 0.2 percent to $4.40 a bushel, capping the first three-session drop since June 11.
--With assistance from Jeff Wilson in Chicago.