Soybeans fell from a two-week high after the U.S. said global inventories before the start of the harvest will rise more than forecast. Corn climbed on signs of increasing demand for livestock feed, and wheat dropped.
Aggregate worldwide stockpiles of soybeans as of Aug. 31 will be 60.21 million tons, up 0.1 percent from the forecast in February, and 8.8 percent from a year earlier, the U.S. Department of Agriculture said today in a report. Analysts surveyed by Bloomberg expected a drop to 59.31 million, on average.
The crop in Argentina, the world’s biggest shipper of soy- based animal feed, will be 51.5 million metric tons, larger than the 51.2 million forecast in a Bloomberg Survey. Brazil, which is projected to pass the U.S. as the top producer and exporter for the first time, will harvest 83.5 million tons, unchanged from last month and 26 percent more than last year, the USDA said.
“The world is going to see record supply coming very soon from South America, reducing demand for U.S. soybeans,” Greg Grow, the director of agribusiness at Archer Financial Services Inc. in Chicago, said in a telephone interview. “People were disappointed that USDA did not cut the size of the South America crops more” after dry weather earlier this year, Grow said.
Soybean futures for May delivery fell less than 0.1 percent to $14.7325 a bushel at 12:41 p.m. on the Chicago Board of Trade after slumping as much as 1.6 percent. Earlier, the price reached $14.8475, the highest for a most-active contract since Feb. 22.
Corn futures for May delivery rose 1.2 percent to $6.9925 a bushel, heading for the biggest gain in a week.
The amount of corn used for animal feed in the U.S. will be 2.2 percent more than forecast a month ago as the government projected higher beef, chicken, turkey and milk production. U.S. inventory will fall to 632 million bushels, the lowest since 1996, the USDA said.
Wheat futures for May delivery fell 0.2 percent to $6.9425 a bushel. On March 6, the price touched $6.80, the lowest since June 22, after rain and snow boosted prospects for the U.S. winter crop that farmers will begin harvesting in late May.
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