Bloomberg soybeans fell in Chicago after a US Department of Agriculture report showed that this year s crop could be the biggest ever. The forecast dragged down prices for wheat along with it.
Domestic soy production is expected to be 4.531 billion bushels, a record. USDA also raised its soy yield estimate to 51.9 bushels an acre, more than the 51.04 analysts expected. The report said that crops in states such as top grower Illinois advanced more quickly than normal.
Terry Reilly, senior commodity analyst at Futures International, said in an interview that Soybeans are pretty much the leader dragging the rest of the commodities lower.
This month s report, known as the World Agricultural Supply and Demand Estimates or WASDE, is closely watched as it comes in the midst of the US growing season. The data comes as Russia slashed Ukraine's invasion, stoking inflation worldwide. The falling prices for crops could add to the optimism that inflation could be easing. Since 2008 food prices have dropped by the most since July.
The data for corn supplies is more complicated and conflicting data in the report caused the market to swing wildly after initially following soybeans lower.
The USDA raised its estimate for the country's corn exports as well as production by a significant amount because of the optimism that the newly agreed Ukraine grain-export deal will be successful. It also slashed its EU crop outlook and US yields.
Soybeans fell as much as 2.3% to $14.1525 a bushel in Chicago, while wheat fell as much as 3.4%. Corn had gone up 1.2% to $6.3525 a bushel as of 12: 10 p.m. local time.
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