Aug. 13 (Bloomberg) -- Soybeans fell to settle at the lowest price since 2010 on speculation that rain in the next week will boost yields following forecasts yesterday by the U.S. government for the harvest this year to climb to a record.
Most fields from North Dakota to Ohio will get as much as 0.75 inch (1.9 centimeters) of rain, according to QT Weather in Chicago. Soybean yields will increase 4.8 percent to 45.5 bushels an acre from a year earlier, and corn will rise 5.4 percent to 167.4 bushels, the Department of Agriculture said. The U.S. is the world’s top grower of the oilseed and grain.
“The forecast looks very good for boosting both corn and soybean yields,” Greg Grow, the director of agribusiness at Archer Financial Services Inc. in Chicago, said in a telephone interview. “There is not much consumptive buying interest because people expect the yields USDA forecast yesterday will get bigger.”
Soybean futures for November delivery fell 1.2 percent to close at $10.4675 a bushel at 1:15 p.m. on the Chicago Board of Trade, the lowest settlement for a most-active contract since Sept. 16, 2010. Yesterday, the oilseed touched $10.43, the lowest intraday price since Oct. 4, 2010.
Soybean-oil futures for December delivery dropped 1.9 percent to 34.32 cents a pound. Earlier, the price touched 34.3 cents, the lowest since Oct. 8, 2009.
Corn futures for December delivery gained 0.2 percent to $3.6975 a bushel after earlier falling as much as 0.9 percent.
World soybean inventories before the start of the 2015 Northern Hemisphere harvests will rise 28 percent to a record 85.62 million metric tons, the USDA said yesterday. Corn stockpiles will increase 9.8 percent to the highest since 2000, the agency says.
“There are more than adequate supplies of both corn and soybeans this year,” Grow said.
Wheat futures for delivery in December fell 1 percent to $5.455 a bushel, capping a three-day decline of 3.6 percent.