USDA Report Triggers Sharp Decline in Chicago Soybean Futures

Chicago soybean futures plummeted on Friday after the US Department of Agriculture's (USDA) supply and demand report was released. The agency raised its forecast for soybean production, which led to a sharp decline in prices. The most-traded soybeans on the Chicago Board of Trade settled 35-3/4 cents lower at USD12.96-1/2 per bushel, dropping by 2.7% from a three-year high set earlier in the session.

The USDA report also lowered its estimate for the nation's corn harvest due to summertime heat that caused crop damage. Corn prices briefly rose before paring gains, settling 3-1/2 cents lower at USD5.30-1/4 per bushel. Wheat prices declined by 16 cents to USD7.25-1/4 per bushel.

The USDA reported that farmers will harvest 15.8 billion bushels of corn this autumn, with an average yield of 178.5 bushels per acre. Soybean production was forecast at 4.535 billion bushels, with an average yield of 52.8 bushels per acre.