Soybeans traded near the lowest level since 2010 on the outlook for increasing global supplies and as forecasts for mild temperatures boosted optimism over US growing conditions. Corn fell.
Soybeans for November delivery added 0.3 per cent to $10.9575 a bushel on the Chicago Board of Trade at 1:12 p.m. in Singapore after declining to $10.92, the lowest level since October 2010. Futures are heading for a third weekly drop, the longest such streak since July 2013.
Cool weather forecast for the Midwest will prevent heat stress on plants over the next 10 days, according to MDA Weather Services in Maryland. The US is heading for record crops of soybeans and corn and the US department of agriculture may release forecasts today that peg global oilseed inventories at a record, according to a Bloomberg survey.
“People are looking at the good harvests and good conditions for crops in the US planting areas,” said Tetsu Emori, a fund manager at Astmax Asset Management Inc. in Tokyo. “We don’t see any significant weather conditions for now. If the USDA shows higher yields and higher production, more than their previous expectations, the market could go down further. Prices are oversold so the market is looking for the bottom.”
Soybeans dropped for the ninth straight session yesterday, the longest slump since June 1981. The USDA may raise its forecast for domestic production to 3.789 billion bushels from 3.635 billion estimated last month, according to the Bloomberg survey. Citigroup Inc. said soybeans may drop to $10.50 in the fourth quarter, while corn was seen at $3.70 a bushel, according to a report e-mailed yesterday.
Global Stockpiles
US growers expect to gather a record corn crop that may boost global stockpiles to 184.47 million tons, the most since 2000, the Bloomberg survey showed. That exceeded the government’s June forecast of 182.65 million tons. About 75 per cent of the US crop was rated in good to excellent condition as of July 6, government data shows.
Corn for delivery in December fell 0.2 per cent to $3.92 a bushel, after reaching $3.915 yesterday, the lowest since July 2010. Wheat for September delivery was little changed at $5.4825 a bushel, near yesterday’s four-year low of $5.4625.
Bloomberg News edited by ESM
