Chicago soybean futures slide as USDA forecasts massive U.S. harvest

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CHICAGO — Chicago soybean futures fell on Friday after a U.S. government crop report said U.S. soy farmers would glean a record harvest even larger than previously forecast, traders said.

While dry weather has hit soybean fields hard in some farms west of the Mississippi River, yields in top-producing states like Illinois, Indiana and Ohio would make up for any shortfalls, the U.S. Agriculture Department’s monthly World Agricultural Supply and Demand Estimates report said.

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Meanwhile, U.S. corn production is forecast to be smaller than previously thought, as adverse weather during critical periods of development limited harvest potential, particularly in the South, according to the report.

“It was more of a bearish surprise for soy, than a bullish one for corn,” said Craig Turner, senior broker at Daniels Trading. “Traders were looking for reductions on both.”

Prior to the report, Chicago Board of Trade soybean futures [0#S:] had been trading higher as investors priced in expectations for a reduction to the crop outlook.

The Chicago Board of Trade’s most-active soybean contract was down 0.14% at $14.46-1/2 a bushel by 1722 GMT, after falling to $14.15-1/4 earlier in the session.

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CBOT corn ticked up 1.39% to $6.36-1/2 a bushel, though it touched its highest since July 11 earlier in the trading day. And CBOT wheat was down 0.71% at $8.05 a bushel.

USDA on Friday raised its forecast of Ukraine’s corn production by 5 million tonnes, due to timely rains, and increased its forecast of Ukrainian corn exports by 3 million tonnes.

Two more ships left Ukraine’s Black Sea ports on Friday, including one carrying the first Ukrainian wheat to be exported under a U.N.-brokered deal, Turkey’s defense ministry said. (Additional reporting by Marcelo Teixeira in New York, Gus Trompiz in Paris and Naveen Thukral in Singapore; Editing by Sherry Jacob-Phillips, Shailesh Kuber and Alexander Smith)

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