Mild temperatures, large stockpiles pulling prices down
Soybean futures fell the week of July 7, as mild temperatures for the Midwest bolster the outlook for a projected record-high crop in the U.S.
U.S. output is expected to grow 15 percent to an all-time high this year, as farmers have planted the most acres of soybeans ever, according to a Bloomberg report.
Soybean and corn prices have fallen since May on favorable weather and government data showing large stockpiles.
Soybean futures for November delivery dropped 1 percent to close at $10.93 July 10 per bushel on the Chicago Board of Trade.
Corn futures for December delivery fell 1.3 percent to $3.9275 per bushel. This marks the eighth straight session of declines, the longest slump since July 1, 2013.
Government data show 75 percent of the U.S. crop in good to excellent condition as of July 6.
“It’s endless cool, wet conditions that couldn’t be better for the hardy crops,” Tim Hannagan, a grain broker at Walsh Trading in Chicago, said in the report. “And corn is in its key yield-development time.”
U.S. growers expect a record crop that may boost global stockpiles to 184.47 million metric tons, the most since 2000, exceeding the government’s June forecast of 182.65 million.
Wheat futures for September delivery fell 0.5 percent to $5.485 per bushel. Earlier, the price touched $5.4625, the lowest since July 14, 2010.