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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