Bloomberg News

Soybeans Fall as Stocks Estimate May Signal Weaker Import Demand

June 10, 2011

June 10 (Bloomberg) -- Soybeans fell for a second day in Chicago on concern a prediction for higher-than-estimated U.S. stockpiles at the end of the marketing year may signal weaker demand from importers.

Soybean inventories will total 180 million bushels (4.9 million metric tons) on Aug. 31, up 5.9 percent from a May forecast, as U.S. exports decline amid a record South American crop, the U.S. Department of Agriculture said. Stockpiles before the 2012 harvest will total 190 million bushels, up from 160 million estimated last month, it said in a report yesterday.

“The USDA raised U.S. soybean ending stocks for 2010-11 and 2011-12 crop years,” Rabobank International analysts said in a report today. “The change was due to lower exports than in their May WASDE report. This was largely due to a lowering of their forecast for Chinese imports,” the analysts said, referring to the USDA’s World Agriculture Supply and Demand Estimates.

Soybeans for November delivery slid 9 cents, or 0.6 percent, to $13.7775 a bushel by 10:30 a.m. London time on the Chicago Board of Trade. The oilseed has dropped 1.8 percent this year, partly on speculation growers may switch from corn to soybeans after wet weather delayed grain sowing. Soybeans can be planted later in the season than corn.

U.S. exporters will ship 1.54 billion bushels of soybeans in the current marketing year, down from 1.55 billion projected in May, the USDA said. It estimated exports in the following period at 1.52 billion bushels, down from 1.54 billion forecast in May.

Corn for July delivery fell 1.5 cents, or 0.2 percent, to $7.84 a bushel, paring a 7.3 percent climb over the prior three sessions. The grain has advanced 25 percent this year.

Wheat for July delivery lost 4.5 cents, or 0.6 percent, to $7.405 a bushel. The grain is down 6.8 percent this year. Milling wheat for November delivery traded on NYSE Liffe in Paris declined 4.50 euros, or 1.9 percent, to 231 euros ($335) a ton.

--Editors: Dan Weeks, Claudia Carpenter.

To contact the reporter on this story: Tony C. Dreibus in London at tdreibus@bloomberg.net

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net


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