Tuesday, January 7, 2014

Soybean Futures Drop as U.S., Global Inventories Seen Expanding

Bloomberg-By Ranjeetha Pakiam Jan 7, 2014 9:31 AM GMT+0530

Soybeans declined on speculation that U.S. and global inventories before next year’s Northern Hemisphere harvest may surpass a government forecast in December. Wheat gained.

Soybeans for March delivery lost as much as 0.7 percent to $12.6775 a bushel on the Chicago Board of Trade, and was at $12.68 by 11:23 a.m. in Singapore. Wheat climbed 0.2 percent to $6.07 a bushel. Futures rallied to a two week-high yesterday on concern that cold weather may damage crops in the U.S., the world’s top exporter.

Global inventories of soybeans may be higher at 71.46 million metric tons from 70.62 million tons earlier while corn reserves were seen at 163.08 million tons from a forecast of 162.46 million tons in December, a Bloomberg News survey of 15 analysts and trading firms showed. U.S. corn stockpiles were seen at 1.86 billion bushels from 1.79 billion bushels, a separate survey of as many as 30 analysts showed. The U.S. Department of Agriculture is scheduled to update its reserve estimates at noon on Jan. 10 in Washington.

“Expectations for U.S. and global inventories for corn and soybeans to be revised higher this month do paint a bearish picture for prices,” said Luke Mathews, a commodity strategist at Commonwealth Bank of Australia. “An upgrade to U.S. soybean production, combined with a modest improvement in South American production prospects, does suggest that global oilseed supplies will be at relatively comfortable levels.”


Corn for March delivery lost as much as 0.4 percent to $4.2625 a bushel and was at $4.265. 

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