Oct. 28 (Bloomberg) -- Soybean futures posted their biggest drop in more than a week on speculation that improving prospects for South American crops will cut demand for supplies from the U.S.
Dry weather the next seven days will accelerate planting in Argentina and Brazil, the world’s biggest exporters after the U.S., and rains beginning Nov. 8 may boost early crop development, World Weather Inc. said today in a report. As of Oct. 20, export sales for the marketing year that began Sept. 1 were 33 percent smaller than a year earlier, government data show.
“South American weather looks promising,” Don Roose, the president of U.S. Commodities Inc. in West Des Moines, Iowa, said in a telephone interview. “With improving crop prospects in Brazil and Argentina, people are focused on the slowing U.S. export pace.”
Soybean futures for January delivery fell 1.4 percent to close at $12.26 a bushel at 1:15 p.m. on the Chicago Board of Trade, the biggest drop since Oct. 19. The slump pared this week’s gain to 0.4 percent.
The amount of U.S. soybeans inspected for export in the week ended Oct. 20 fell 43 percent to 41.15 million bushels from a year earlier, according to a U.S. Department of Agriculture report. Total inspections since the start of the marketing year were 39 percent below a year earlier.
Soybeans are the second-biggest U.S. crop, valued in 2010 $38.9 billion, behind corn at $66.7 billion, government figures show.
--Editors: Steve Stroth, Daniel Enoch
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