Meanwhile, wheat prices remained underpinned by concerns over a disruption to supplies from Russia.
Grain traders were awaiting the release of the U.S. Department of Agriculture’s updated weekly crop progress report due out after Monday’s closing bell to gauge how quickly the U.S. soybean and corn harvest was accelerating.
On the Chicago Mercantile Exchange, soybeans futures for November delivery traded at USD16.0588 a bushel, dropping 0.95%.
The November contract fell by as much as 1.7% earlier in the session to hit a daily low of USD15.9038 a bushel, which was the weakest level since August 8.
Soybean prices have been under heavy selling pressure in recent sessions, losing nearly 11% since hitting an all-time high of USD17.8888 a bushel on September 4, as U.S. farmers started harvesting soybeans at a brisk pace.
Approximately 10% of the U.S. soy crop was harvested as of September 16, higher than the five-year average of 4% for this time of year.
On Friday, influential crop forecaster Informa Economics estimated the 2012 U.S. soybean planted area at 77.143 million acres, up from the U.S. Department of Agriculture's estimate of 76.1 million acres.
Meanwhile, industry group Oil World said global soybean consumption will drop almost 3 million metric tons in the 2012-13 marketing season as record prices curb demand.
Elsewhere, corn futures for December delivery traded at USD7.4662 a bushel, easing down 0.15%. The December contract was stuck in a tight trading range of USD7.4988 a bushel, the daily high and a session low of USD7.4212 a bushel.
Front-month corn prices fell to a ten-week low of USD7.3912 a bushel on September 20, after data showed the U.S. corn harvest was accelerating at a faster rate than anticipated.
The USDA will release its weekly crop progress report later in the day. Nearly 26% of the U.S. corn crop was harvested as of last week, significantly higher than the 8% recorded in the same week a year earlier and above the five-year average of 9% for this time of year.
Corn prices touched a record high of USD8.4237 a bushel on August 10, as the same hot, dry weather that boosted soybeans buoyed corn futures as well. Corn is grown in many of the same regions across the U.S. as soybeans.
Meanwhile, wheat for December delivery traded at USD8.9450 a bushel, shedding 0.3%. Earlier in the day, prices fell by as much as 0.75% to hit a session low of USD8.9038 a bushel.
Market participants took locked in gains after wheat futures rallied 2.1% on Friday after Russia’s Economy Minister Andrei Belousov said the country could limit grain exports in the autumn if domestic grain prices rise sharply.
However, Russia’s Deputy Prime Minister Arkady Dvorkovich later said there were no such plans to restrict exports.
In 2010, Russia barred grain exports for almost a year amid a severe drought, prompting global buyers to turn to U.S. supplies.
Russia is a major wheat exporter and competes with the U.S. for business on the global market. A disruption to exports from the country could boost demand for U.S. supplies, which is the world’s third largest wheat producer and biggest exporter. Corn is the biggest U.S. crop, valued at USD66.7 billion in 2010, followed by soybeans at USD38.9 billion, government figures show. Wheat was fourth at USD13 billion, behind hay.
For the latest updates on the stock market, PRESS CTR + D or visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today
No comments:
Post a Comment