Aug. 26 (Bloomberg) -- Soybeans extended a slide to the lowest price since September 2010 in Chicago on expectations that farmers will harvest a record crop in the U.S., the world’s biggest producer. Corn and wheat also declined.
Seventy percent of soybeans in the main growing areas were in good or excellent condition as of Aug. 24, the highest for this time of year since 1992, the U.S. Department of Agriculture said yesterday. The harvest may reach 3.816 billion bushels, boosting global inventories 28 percent to a record, the USDA estimates. As much as five times the normal rainfall in the past week has eased soil-moisture deficits in the Midwest, government data show.
“Soybean yields are growing with the rains during the past week,” Roy Huckabay, an executive vice president for The Linn Group in Chicago, said in a telephone interview. “The harvest is starting in the south,” increasing supplies available for processors and exporters, Huckabay said.
Soybeans futures for November delivery fell 0.1 percent to close at $10.28 a bushel at 1:15 p.m. on the Chicago Board of Trade, after touching $10.1975, the lowest for a most-active contract since Sept. 3, 2010.
Corn futures for December delivery declined 0.7 percent to $3.65 a bushel, dropping for a second day.
The USDA rated 73 percent of the domestic corn crop as good or excellent on Aug. 24, up from 72 percent the week before and 59 percent a year earlier. The agency estimates the harvest will be 14.032 billion bushels, the most ever.
Wheat futures for December delivery gained 0.4 percent to $5.565 a bushel in Chicago, after sliding 1.4 percent yesterday.
The condition of the spring wheat declined last week, the USDA said. After damaging rains from Montana to Minnesota, 66 percent of the crop was in good or excellent condition, the lowest for this season and down from 67 percent a year ago. Spring-wheat production may rise 7.1 percent to 572 million bushels this year, the government said Aug. 12.
“Too much rain has hurt yields and quality,” Joe Hofmeyer, a market analyst at CHS Hedging Inc. in Inver Grove Heights, Minnesota, said in a telephone interview. “We are still going to have a big U.S. spring-wheat crop. It’s just smaller than it was earlier.”
--With assistance from Phoebe Sedgman in Melbourne and Whitney McFerron in London.