Soybean futures rose in overnight trading, boosted by forecasts of light rain over the next 48 hours across much of the U.S. Midwest. In contrast, soybean prices corn It's from wheat showed modest declines.
Dry conditions are currently spreading across parts of the Corn Belt as the growing season draws to a close. According to the U.S. Drought Monitor, as of September 3, 43% of Iowa was abnormally dry. This is up from 38% the previous week and 23% three months ago. Similarly, Illinois is also experiencing dry conditions, with 58% of the state affected, compared to 29% last week and 5% three months ago. The National Weather Service’s Weather Prediction Center forecasts light rainfall for the region over the next few days.
Expectations of large soybean and corn crops keep prices stable
Despite the dry conditions, expectations for bumper U.S. soybean and corn crops are keeping prices relatively stable. However, for the 2024-2025 marketing year, which began Sept. 1, USDA estimates soybean production at 4.589 billion bushels, with a yield of 53.2 bushels per acre. That’s up from 4.165 billion bushels and 50.6 bushels per acre a year ago. Corn production is expected to fall to 15.147 billion bushels, from 15.342 billion last year, though yields are expected to rise to 183.1 bushels per acre from 177.3 bushels. Ending stocks are also expected to increase to 2.073 billion bushels, from 1.867 billion a year ago.
The USDA will release an updated supply and demand report on Thursday. Overnight, November soybean futures rose 4 1/2¢ to $10.09 1/2 a bushel on the Chicago Board of Trade. Soybean meal rose 1 cent to $$ 324.50 a short ton, and soybean oil rose 0.5¢ to 40.13¢ a pound. Meanwhile, corn futures fell 1 cent to $$ 4.04 3/4 a bushel, and December wheat futures lost 3 1/4¢ to $$ 5.63 3/4 a bushel. Kansas City futures also fell 1 3/4¢ to $$ 5.75 3/4 a bushel.
Source: Leonardo Gottems | agrolink
