Soybeans Decline as Rain in U.S. Midwest May Increase Output

By William Bi

Sept. 3 (Bloomberg) -- Soybeans fell on speculation rain in the main U.S. growing region will aid crops and on a report this year's output may be more than expected.

Increasing shower activity in the western part of the Midwest this week should be favorable to soybeans, Meteorlogix LLC said yesterday. The soybean harvest this year will be 3.003 billion bushels compared with 2.973 billion forecast by the government last month, FCStone Group Inc. said yesterday.

``There will certainly be corrections if rain falls in early September,'' Wei Dong, chief representative of FCStone's China operations, said by phone. ``The market is bound to be turbulent as more organizations come up with divergent forecasts.''

Soybean futures for November delivery fell as much as 11.25 cents, or 0.9 percent, to $12.8725 a bushel, in after-hour trading on the Chicago Board of Trade. It was at $12.90 at 1:46 p.m. in Beijing. Earlier it had risen as much as 15.50 cents, or 1.2 percent to $13.14.

About 57 percent of U.S. soybeans were rated good or excellent, down from 61 percent a week earlier and up from 56 percent a year ago, the U.S. Department of Agriculture said yesterday. About 61 percent of the corn crop got the top ratings, compared with 64 percent a week earlier and 59 percent a year ago, it said.

Corn futures for December delivery fell as much as 2.25 cents, or 0.4 percent, to $5.67 a bushel, and traded at $5.7025 at 1:50 p.m. in Beijing. December-delivery wheat lost as much as 8.5 cents, or 1.1 percent, to $7.5825, and last traded at $7.67.

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