RSS
Twitter
Linked In
News In
Markets
Linked In
RSS
https://twitter.com/Agrimoney
http://www.newsnow.co.uk/h/Industry+Sectors/Agriculture

You are viewing 1 of your 2 complimentary articles.

Register now to receive full access.

Already registered?

Login | Join us now

Strong plantings data send soybeans tumbling

Twitter Linkedin

Soybeans reversed early gains to close back below $12 a bushel after Informa Economics forecast that US farmers had planted nearly 3m acres more of the crop than current official estimates.

The analysis group pegged plantings at 78.9m acres, compared with a current US Department of Agriculture figure of 76m acres, traders said.

That implies a potential extra 124m bushels (3.4m tonnes) of soybean harvest at the yield of 42.6 bushels an acre that the USDA is predicting this year.

Chicago's benchmark July soybean contract, which had topped $12.25 a bushel earlier, ended at 11.79 a bushel, down 2.9% on the day, with new crop contracts showing similar declines.

Bullish vs bearish

While Agrimoney.com was unable to obtain a copy of the report, many analysts have previously suggested that delays to corn and spring wheat plantings, coupled with buoyant soybean prices, might tempt farmers to switch to beans.

Indeed, Informa forecast that US corn sowings would come in at 83.1m acres, 1.9m acres below USDA forecasts, with spring wheat plantings pegged in line at 13.4m acres.

"Informa's numbers were considered bullish corn, bearish beans and neutral spring wheat," Vic Lespinasse at GrainAnalyst.com said.

However, other Chicago crops found it difficult to make much headway against such a weak soybean market. which has been supported in recent weeks by the prospect of US stocks falling to their lowest since 1977.

July corn ended 4.0 cents lower at $3.99 1/2 a bushel, its first close below $4 a bushel for six weeks, with wheat finishing down 5.0 cents at $5.55 1/2 a bushel.

The USDA will on June 30 release updated estimates for crop plantings.

Twitter Linkedin
Related Stories

Evening markets: South American double whammy brings ags back down to earth

Ags lose early gains, undermined by a tumble in Brazil’s real, and falling rain in Argentina. Still, wheat futures remain in positive territory

Can cotton prices extend their rally?

History suggests futures will not stay long in the 70s cents a pound. So which way will they trend?

Morning markets: Hard wheat regains premium over soft, amid US dryness worries

Kansas City wheat outperforms, as Plains precipitation worries extend to a dearth of snow cover. But Kuala Lumpur palm oil hits a 16-month low

Evening markets: Ags gain, as funds begin to get that year-end festive mood

Ag prices recover, helped by the likes of more positive comment on US export competitiveness, and some more negative talk on Argentine rains
Home | About | RSS | Commodities | Companies | Markets | Legal disclaimer | Privacy policy | Contact

Our Brands: Comtell | Feedinfo | FGInsight

© Agrimoney.com 2017

Agrimoney.com and Agrimoney are trademarks of Agrimoney Ltd
Agrimoney is part of the Briefing Media group
Agrimoney Ltd is registered in England & Wales. Registered number: 09239069