Corn and Soybean Futures Fall as Rains Boost Supply Gains
September rains have strengthened projected crop gains, lowering corn and soybean futures
As a result of beneficial September rains across much of the nation’s Corn Belt, corn and soybean futures dropped with signs of supply gains in the U.S., the world’s largest producer of these crops. This is according to a recent Bloomberg news article.
Corn futures fell to a three-year low, while soybean futures for November delivery dipped 1.6% to $12.67 a bushel, the largest drop since Sept. 30. Timely rain in September allowed plants to mature late in the season, which was much needed following a late start to the planting season. The September rains also allowed soybeans to mature, as soy plants filled pods with bigger beans. Yields for these crops are nearly 20 bushels larger per acre than expected, according to the article.
Don Roose, president of U.S. Commodities Inc. in West Des Moines, Iowa, said in the article, “Farmers are harvesting yields that are consistently bigger to much bigger than they were planning. We have to rebuild demand in the world markets with lower prices to sell the excess.”
Crop producers across the Corn Belt benefited from September rains, allowing their late-planted crops to mature and prepare for harvest. In anticipation of these crop gains, corn and soybean futures dropped, with corn falling to a three-year low, according to Bloomberg.