Soybeans decline behind cooperating weather for harvests
October 23, 2014 7:33 am
Soybeans fell for the second consecutive day on belief that dry weather in the US will make for a faster harvesting rate of a record high crop.
Futures for the commodity with a delivery date in November lost as much as 0.7% today for a price per bushel of $9.56. It was trading at $9.61 late morning Singapore time on the Chicago Board of Trade. Soybeans have advanced by 5.3% so far this month alongside the 9.9% improvement of corn when the onset of rains slowed down harvesting in the US.
The US Department of Agriculture (USDA) estimates that 53% of the soybean crop and 31% of corn have been harvested as of October 19, falling below their respective five year averages. The MDA Weather Services claimed that although rain showers are expected in the north western regions of the Midwest, no delays are expected to happen, while progress will be made in other areas.
Analyst Wayne Gordon from Singapore’s UBS AG says that, “It’s really hanging on the harvest pace in the U.S. As those conditions improve, as the weather maps suggest they will, we then get a downward trend re-established.”
Rain in Brazil during the weekend will bring back moisture in the country’s planting areas, favoring the germination of soybeans and corn. Brazil and the US are the world’s largest exporters of soybeans, says the USDA.
Corn with a delivery date in December dropped as much as 0.4% for a price per bushel of $3.515. Wheat in December declined by 0.2% to $5.21 per bushel.
The material has been provided by InstaForex Company – www.instaforex.com
Soybeans fell for the second consecutive day on belief that dry weather in the US will make for a faster harvesting rate of a record high crop.
Futures for the commodity with a delivery date in November lost as much as 0.7% today for a price per bushel of $9.56. It was trading at $9.61 late morning Singapore time on the Chicago Board of Trade. Soybeans have advanced by 5.3% so far this month alongside the 9.9% improvement of corn when the onset of rains slowed down harvesting in the US.
The US Department of Agriculture (USDA) estimates that 53% of the soybean crop and 31% of corn have been harvested as of October 19, falling below their respective five year averages. The MDA Weather Services claimed that although rain showers are expected in the north western regions of the Midwest, no delays are expected to happen, while progress will be made in other areas.
Analyst Wayne Gordon from Singapore’s UBS AG says that, “It’s really hanging on the harvest pace in the U.S. As those conditions improve, as the weather maps suggest they will, we then get a downward trend re-established.”
Rain in Brazil during the weekend will bring back moisture in the country’s planting areas, favoring the germination of soybeans and corn. Brazil and the US are the world’s largest exporters of soybeans, says the USDA.
Corn with a delivery date in December dropped as much as 0.4% for a price per bushel of $3.515. Wheat in December declined by 0.2% to $5.21 per bushel.
The material has been provided by InstaForex Company – www.instaforex.com
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