Soybeans Drop Most This Month as Wet Weather Boosts Crop Outlook

Jun 27, 2014 3:17 pm ET

June 27 (Bloomberg) -- Soybean futures fell the most this month as warm, wet weather improved growing conditions amid the outlook for a record crop in the U.S., the world’s biggest grower. Corn and wheat rose.

Domestic farmers will harvest 3.635 billion bushels of soybeans this year, the most ever, the U.S. Department of Agriculture predicts. As of June 22, 72 percent of crops were in good or excellent condition, the most for the date in records going back to 1986, USDA data show.

“The crops look very good, and that remains the biggest negative factor,” Jim Gerlach, the president of A/C Trading Co. in Fowler, Indiana, said in a telephone interview. “The forecasts show very little that will threaten production.”

Soybean futures for November delivery dropped 1.3 percent to close at $12.28 a bushel at 1:15 p.m. on the Chicago Board of Trade, the biggest drop for a most-active contract since May 27.

U.S. farmers probably planted a record 82.21 million acres, more than the government’s March forecast of 81.49 million, a Bloomberg News survey showed. The USDA is set to release its new acreage estimate June 30.

Dupont Co., the maker of Pioneer seeds, and Monsanto Co. said this week that earnings will be lower this quarter because farmers switched to planting more soybeans at the expense of corn after rain delayed grain sowing.

Corn futures for delivery in December rose 0.9 percent to $4.4725 a bushel. U.S. planting may total 91.71 million acres, little changed from the USDA’s 91.69 million estimate in March, the Bloomberg survey showed.

Wheat futures for September delivery advanced 1.5 percent to $5.9375 a bushel. This week, the price gained 0.1%, the first rally since May 9.