Sandy, Brazil Pushed Soybean Futures Lower

By CnAgri2012-10-30 19:25:42 Print

U.S. soybean futures fell 2.2 percent on Monday, their biggest daily slide in almost a month, due to crop-friendly weather forecasts for top producer Brazil and concerns about Hurricane Sandy's impact on the U.S. financial sector.

The sell-off in soybeans pulled down wheat and corn, although both grains were underpinned by problematic weather for wheat in the southern U.S. Plains, Australia and elsewhere.

Soybeans led declines at the Chicago Board of Trade, falling for a third straight session as forecasts called for improved soybean planting weather in Brazil. According to Reuters, the global grain trade is counting on Brazil and Argentina to produce a bumper soy crop in early 2013 after drought clipped the 2012 U.S. harvest as well as the previous South American crop.

The Brazilian government has forecast that the country will produce 80 million to 82.8 million tonnes of soybeans for the 2012/13 season, surpassing U.S. production of 77.8 million. The U.S. Department of Agriculture has projected Brazil's crop at 81 million tonnes.

If crop forecasts are verified, Brazil and Argentina should combine for slightly more than half of global soybean output for 2012/13, a factor that is magnifying the market impact of any shifts in weather as farmers continue planting.