By Luzi Ann Javier
Aug. 6 (Bloomberg) -- Soybean futures plunged on expectations shipments from the U.S., the world’s biggest grower and exporter, will slow, swelling domestic stockpiles.
Inventories in the U.S. will rise to 259 million bushels in the 2009-2010, up from an estimated 95 million bushels this year, Allendale Corp., a U.S. commodity research firm, said in a note e-mailed today. That compares with the 250 million bushels forecast by the U.S. Department of Agriculture in July.
Expectations of slower U.S. shipments and higher stockpiles “is very bearish,” Ben Barber, a futures adviser at Bell Commodities Ltd., said by phone from Melbourne today. “It takes away some of the fundamentals.”
Soybeans for November delivery, after the U.S. harvest, fell 2 percent to $10.2375 a bushel in after-hours electronic trading on the Chicago Board of Trade at 12:51 p.m. Singapore time, after dropping as much as 2.5 percent earlier.
Soybean-meal for December delivery lost as much as 3 percent to $309.10 per 2,000 pounds, before trading at $310.50.
U.S. exporters sold 1.92 million tons of soybeans to China, of which 1.8 million tons are for delivery in the marketing year beginning September.
Corn futures fell for a third day on speculation producers are rushing to lock in prices ahead of the harvest beginning September as they expect expanding U.S. output will extend price declines.
Harvests in the U.S. will increase 3.7 percent to 12.554 billion bushels, the second-highest on record, as yields rise, Informa Economics said yesterday in a report.
“If you’re a producer of corn, you’d be looking at that and saying ‘let’s better lock in there’,” Barber said.
Corn for December delivery lost as much as 2.1 percent to $3.495 a bushel and last traded at $3.5125 at 12:56 p.m. Singapore time. Wheat for December delivery lost 1.1 percent to $5.5075 a bushel.
To contact the reporter on this story: Luzi Ann Javier in Singapore at ljavier@bloomberg.net
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