July 30 (Bloomberg) -- Soybeans fell in Chicago, heading for a July slump that would mark the longest monthly losing streak in more than a year, on speculation that rain will improve yields in the U.S. Midwest. Corn and wheat advanced.
Scattered showers are expected early next week before more widespread precipitation develops toward the end of the week, Commodity Weather Group said in an e-mailed report today. U.S. corn and soybean crops are developing in the best condition in at least 10 years, government data show.
“We’re in the midst of a weather market,” Joe Vaclavik, president of Standard Grain Inc. in Chicago, said in a telephone interview. “August is by far the most important month for soybean growth. If we catch some rains next week, that’s going to go a long way.”
Soybeans futures for November delivery fell 1.3 percent to close at $10.8125 a bushel at 1:15 p.m. on the Chicago Board of Trade. The oilseed is down 6.6 percent in July on the outlook for a record U.S. crop, set for a third straight month of declines that would be the longest slump for a most-active contract since April 2013.
Corn futures for December delivery gained 0.1 percent to $3.715 a bushel. The grain is heading for a 13 percent loss in July, extending declines in the two prior months. The U.S. harvest may be the second-largest ever, the U.S. Department of Agriculture said.
Seventy-five percent of corn in the main U.S. growing areas was in good or excellent condition as of July 27, the best shape since 2004, USDA data show. Soybean crops, rated 71 percent in top condition, were in the best shape for this time of year since 1994.
“We still need one more large-scale, good coverage rain to finish the corn crop off,” James Bower, president of Bower Trading Inc. in Lafayette, Indiana. “Overall, it’s been so cool that there’s little pressure.”
Wheat futures for September delivery climbed 1.4 percent to $5.2725 a bushel after tumbling to $5.185 yesterday, the lowest for a most-active contract since July 2010.