September 17, 2014
Expectations of US bumper crop lead to 24% drop in soybean prices
Rising speculations of a bumper crop in US, which could overwhelm demand, have send soybean futures declining as prices dropped 24% in 2014, according to a Bloomberg report.
The Department of Agriculture has forecast output of the oilseed crop at an all-time high of 3.913 billion bushels, up 19% from 2013.
Soybeanfutures for November delivery fell 0.9% to close at US$9.8075/bushel on the Chicago Board of Trade. Trading was 31% above the average in the past 100 days for this time, according to data compiled by Bloomberg. On September 11, soybean fell to US$9.695, the lowest for a most-active contract since July 28, 2010.
In the meantime, wheat dropped to the lowest since 2010, while corn rose.
Wheat futures for December delivery fell 0.9% to US$4.9625/bushel. The grain fell to US$4.91, the lowest since July 1, 2010, after climbing as high as 1.5%. This year, the grain has dropped 18%.
Corn production was projected at a record 14.395 billion bushels, up 3.4%.
Corn futures for December delivery rose 0.2% to US$3.4375/bushel. Earlier, the price declined as low as 1.2%. The commodity has dropped 19% in 2014.
Corn is the biggest US crop by value, followed by soybeans, hay and wheat, according to government data.