Soy, Wheat Fall as U.S. Forecasts Ease Supply Concerns

Agricultural , Commodities , Soybaens , Wheat Nov 09, 2012 No Comments

Soy, wheatSoybeans tumbled to a four-month low and wheat fell the most in a month after the U.S. raised its estimates for crop inventory including corn, easing concern over tight supplies following the worst drought since 1956.

Soybean futures for January delivery fell 3 percent to close at $14.5125 a bushel at 2 p.m. on the Chicago Board of Trade. Earlier, the oilseed touched $14.49, the lowest for a most-active contract since July 3. On Sept. 4, the price rose to a record $17.89.

Wheat futures for December delivery dropped 1.7 percent to $8.865 a bushel, the biggest decline since Oct. 12. The price has surged 36 percent this year. On July 23, the grain reached $9.4725, the highest since August 2008.

The Midwest drought that cut output in the U.S., the world’s biggest exporter of the three crops, sent soybean and corn prices to record highs and wheat to a four-year peak. Surging costs may have damped demand by makers of food, biofuel and livestock feed, said Mark Schultz, the chief analyst at Northstar Commodity Investment Co.

via Soy, Wheat Fall as U.S. Forecasts Ease Supply Concerns – Bloomberg.

Rod Sherkin

Rod is a former senior executive, responsible for Purchasing, for both Pillsbury and Ball Packaging back in the 80’s and 90’s. Since then, he has continued to work in the Purchasing field as both a consultant and founder of the website Propurchaser.com.

Leave a Reply

Your email address will not be published. Required fields are marked *