Corn, Soybeans May Fall as Outlook for U.S. Production Improves

By Jeff Wilson

Aug. 11 (Bloomberg) -- Corn may drop for a seventh straight week and soybeans may decline for a sixth on speculation the U.S. government will boost its production forecasts tomorrow, reducing the allure of grains as a hedge against inflation.

Twelve of 19 traders, advisers and grain merchants surveyed Aug. 8 said corn would fall, and 12 of 20 respondents said to sell soybeans. Corn slid 11 percent to $5.1825 a bushel last week in Chicago and is down 35 percent since reaching a record $7.9925 on June 27. Soybeans dropped almost 14 percent to $11.805 a bushel last week and has fallen 28 percent from an all-time high of $16.3675 on July 3.

Last week's declines were expected by the majority of respondents surveyed Aug. 1. Since 2004, 59 percent of the surveys were correct for corn and 62 percent for soybeans.

Weekly results: Bullish on corn: 7 Bullish on soybeans: 8 Bearish on corn: 12 Bearish on soybeans: 12

To contact the reporter on this story: Jeff Wilson in Chicago at jwilson29@bloomberg.net.