Corn, Soybeans drop as warm weather boosts US crop potential
Sunday, 20 September 2009
NRW YORK, Sept 18 (Bloomberg): Corn futures fell for the third straight day and soybeans dropped the most in a week as warm, dry weather boosts prospects for crops in the US, the world's biggest exporter of the grain.
Temperatures in the Midwest were as much as 12 degrees Fahrenheit above normal for the past 10 days, data from the High Plains Regional Climate Center show. Developing plants will benefit as temperatures stay above freezing in the next two weeks, said John Dee, the president of Global Weather Monitoring in Mohawk, Michigan.
"The weather in the past four weeks has been nearly ideal for pushing corn and soybeans toward maturity and boosting yields, especially for corn,", said Brian Grete, a senior market analyst at Professional Farmers of America in Cedar Falls, Iowa. "The weather models have no threatening freeze in the forecast today."
Corn futures for December delivery fell 11 cents, or 3.3 per cent, to $3.18 a bushel on the Chicago Board of Trade. The price fell 0.5 per cent this week and is down 22 per cent this year. On Sept. 8, the most-active contract dropped to a three- year low of $3.02.
Three days ago, corn surged a record 9 per cent on forecasts for freezing temperatures next week in the central Midwest.
Soybean futures for November delivery fell 12 cents, or 1.3 per cent, to $9.41 a bushel, the biggest decline since Sept. 11. This week, the price gained 4.2 per cent, snapping a two-week slide. The oilseed is down 4 per cent this year.
Corn output will total 12.954 billion bushels, up 7 per cent from last year's crop and the second biggest ever, the US Department of Agriculture said last week. The agency said yields will climb to a record 161.9 bushels an acre from 153.9 bushels.
Soybean production will jump to a record 3.245 billion bushels, 9.7 per cent bigger than last year, with yields rising to 42.3 bushels an acre from 39.6 bushels, the USDA said.
Corn is the biggest US crop, valued at $47.4 billion in 2008, followed by soybeans at $27.4 billion, government data show.
Temperatures in the Midwest were as much as 12 degrees Fahrenheit above normal for the past 10 days, data from the High Plains Regional Climate Center show. Developing plants will benefit as temperatures stay above freezing in the next two weeks, said John Dee, the president of Global Weather Monitoring in Mohawk, Michigan.
"The weather in the past four weeks has been nearly ideal for pushing corn and soybeans toward maturity and boosting yields, especially for corn,", said Brian Grete, a senior market analyst at Professional Farmers of America in Cedar Falls, Iowa. "The weather models have no threatening freeze in the forecast today."
Corn futures for December delivery fell 11 cents, or 3.3 per cent, to $3.18 a bushel on the Chicago Board of Trade. The price fell 0.5 per cent this week and is down 22 per cent this year. On Sept. 8, the most-active contract dropped to a three- year low of $3.02.
Three days ago, corn surged a record 9 per cent on forecasts for freezing temperatures next week in the central Midwest.
Soybean futures for November delivery fell 12 cents, or 1.3 per cent, to $9.41 a bushel, the biggest decline since Sept. 11. This week, the price gained 4.2 per cent, snapping a two-week slide. The oilseed is down 4 per cent this year.
Corn output will total 12.954 billion bushels, up 7 per cent from last year's crop and the second biggest ever, the US Department of Agriculture said last week. The agency said yields will climb to a record 161.9 bushels an acre from 153.9 bushels.
Soybean production will jump to a record 3.245 billion bushels, 9.7 per cent bigger than last year, with yields rising to 42.3 bushels an acre from 39.6 bushels, the USDA said.
Corn is the biggest US crop, valued at $47.4 billion in 2008, followed by soybeans at $27.4 billion, government data show.