USDA Report Sends Chicago Soybean Futures Plummeting Amid Crop Damage Concerns
Chicago soybean futures continued to fall on Friday after the US Department of Agriculture's supply and demand report increased forecasts for soybean production. The USDA estimated that farmers will harvest 15.8 billion bushels this autumn with an acreage yield of 178.5 bushels, exceeding analyst expectations. In a poll, analysts predicted corn would produce 15.785 billion bushels with a yield average of 178.2 bushels/acre and soybeans to produce 4.501 billion bushels with a yield average of 52.5 bushels/acre.
The Chicago Board of Trade's most traded soybeans settled at $12.96-1/4 per bushel after falling 35-3/4 cents or 2.7% from a session high. Corn closed 3-1/2 cents below at $5.30-1/4 a bushel, while the CBOT wheat price settled at $7.25-1/4 a bushel, down 16 cents.
The Chinese demand for soybeans helped boost prices as China purchased around 1 million metric tonnes of US soya beans this week. This follows China's commitment to buy 25 million tons of US soya beans annually through 2028, which was reduced to just half.