Soybeans fell from the highest price on record and corn declined on speculation that the worst drought damage to U.S. crops has passed, while reports showed fields in Indiana were in better shape than expected.
Participants on the annual Pro Farmer Midwest Crop Tour estimated Indiana corn yields at 113.3 bushels per acre, better than the U.S. Department of Agriculture’s forecast for the state of 100 bushels an acre, according to findings yesterday. Field samples showed a 9.2 percent decline in soybean yield potential, compared with last year, while the USDA projects an 18 percent drop. Indiana was the fifth-largest corn and soybean growing state last year.
“We are following what happens in the U.S. on the Pro Farmer tour,” Arnaud Saulais, a broker at Starsupply Commodity Brokers, said by phone from Nyon, Switzerland. “There were some reports from Indiana with higher-than-expected yields. It seems to be mixed.”
Soybeans for November delivery fell 0.6 percent to $17.22 a bushel on the Chicago Board of Trade by 7:28 a.m. Chicago time. Earlier, the oilseed climbed to an all-time high of $17.3425. Futures surged 43 percent this year, the most on the Standard & Poor’s GSCI index of 24 commodities, as U.S. drought followed dry weather that cut South American output last season.
Corn for December-delivery dropped 0.5 percent to $8.3425 a bushel in Chicago, after reaching $8.40 yesterday, the highest for the most-active contract since a record $8.49 on Aug. 10.
Drought affects 87 percent of U.S. corn crops and 85 percent of soybeans, the National Climatic Data Center said Aug. 16. Dry weather also has lowered water levels on the Mississippi and Ohio rivers, shutting some thoroughfares and delaying barge traffic.
Storms later this week in the western Midwest may bring less than 0.5 inch (1.3 centimeters) of rain, while areas of Illinois and Minnesota may see moisture next week, according to an AccuWeather Inc. report. Crop tour results in Nebraska yesterday showed smaller corn and soybean yield potential than the USDA’s forecast.
Wheat for December delivery fell 0.9 percent to $9.14 a bushel in Chicago, the first drop since Aug. 14. In Paris, November-delivery milling wheat declined 0.7 percent to 266 euros ($331) a metric ton on NYSE Liffe. The grain has rallied 31 percent since mid-June as dry weather cut yields in Russia, raising concern that the country would restrict exports.
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