Soybeans Post Weekly Drop on Prospects for Ample U.S. Supplies

Jul 25, 2014 4:32 pm ET

July 25 (Bloomberg) -- Soybeans fell in Chicago, extending a weekly loss, on the outlook for an ample U.S. harvest. Corn was little changed, and wheat rose.

Yields in Iowa, among the biggest U.S. soybean growers, may rise to records this season as cool temperatures boosted plant development, according to estimates from Doane Advisory Services, which toured fields this week. Showers in parts of the Midwest and Northern Plains yesterday were “more extensive than expected,” Commodity Weather Group LLC in Bethesda, Maryland, said today in a report, adding to signs that dryness is easing.

“There’s the continued perception that there are no growing season problems,” William Fordham, the owner of C&S Grain Market Consulting in Ohio, Illinois, said in a telephone interview. “There doesn’t seem to be an urgency for anyone to be a buyer of grains right now.”

Soybean futures for November delivery fell 0.1 percent to close at $10.835 a bushel on the Chicago Board of Trade, posting a weekly loss of 0.2 percent.

Corn futures for December delivery gained 0.6 percent to $3.7175 a bushel. Prices declined 1.8 percent this week, a fifth straight drop. The grain has slid 12 percent this year.

U.S. farmers will harvest a record 3.8 billion bushels of soybeans this year, while corn output at 13.86 billion bushels will be the second-highest ever, the U.S. Department of Agriculture said on July 11.

Iowa corn yields may reach 190 bushels an acre, up from 165 bushels last year and a prior record of 182 bushels set in 2009, according to St. Louis-based Doane. Soybean yields were pegged at a record 53 bushels an acre, up from 44.5 bushels in 2013.

Wheat futures for September delivery rose 1.7 percent to $5.38 a bushel in Chicago, marking an increase of 1.1 percent this week.