Soybeans Decline as Midwest Rains May Boost U.S. Crop Prospects

By William Bi

Aug. 1 (Bloomberg) -- Soybeans fell on speculation rain forecast in the U.S. Midwest will ease heat stress on the plants, and as imports from China, the largest buyer, may slow after a possible state sale of soybean oil.

Midwestern states may get as much as 1 inch (25 millimeters) of rain next week, Meteorlogix LLC said in a report yesterday. China may soon sell soybean oil from reserves to cool inflation, said traders including Chen Baomin of Jilin Grain Group Co.

``There just isn't any bullish news from the supply side, the prospect of a bigger-than-expected soybean crop is gaining,'' Chen said by phone from Changchun. ``The speculated China reserve sale further shook people's confidence.''

Soybeans for November delivery fell as much as 20.5 cents, or 1.5 percent, to $13.835 a bushel in after-hour electronic trading on the Chicago Board of Trade. The contract traded at $13.8475 at 1:29 p.m. in Beijing.

Corn for December delivery fell as much as 6.5 cents, or 1.1 percent, to $6.01 a bushel on the Chicago Board of Trade, extending a 2.2 percent decline yesterday. It last traded at $6.0225.

On the Dalian Commodity Exchange, soybeans for January delivery fell as much as 171 yuan, or 3.8 percent, to 4,376 yuan ($640) a ton. The contract ended the morning session at 4,395 yuan.

To contact the reporter on this story: William Bi in Beijing at wbi@bloomberg.net