Commodities Soybean and Corn Fell, Future Price Drop

Soybeans fell decline in a month and corn fell to a three-week low on speculation that the rain will increase the plant in Brazil and Argentina, the world's largest exporter after the United States.




Soybean futures for March delivery fell 13 cents, or 0.9 percent, to close at $ 13.65 a bushel at 1:15 at the Chicago Board of Trade. Prices fell 2.7 percent for the week. The most active contract jumped 13 percent in December, capping gains 34 percent in 2010 on increased demand for animal feed and cooking oil made from oil seeds.




Corn futures for March delivery fell 7 cents, or 1.2 percent, to $ 5.95 per bushel in Chicago, the lowest for the most-active contract since Dec. 17. commodities lost 5.4 percent for the week, the first weekly decline since mid-November, as export demand slows. Price reaches 29-month high at $ 6.34 on Jan. 3. 2011.




Soybean prices also fell on concern that demand for U.S. corn and soybeans from China, the biggest global consumer of grain and vegetable oil, may slip, said Richard Feltes, vice president of research at RJ O'Brien & Associates in Chicago.




Corn is the biggest U.S. crop, valued at $ 48600000000 in 2009, followed by soybeans at 31.8 billion U.S. dollars, government data showed. Corn-based feed ingredients, was banished to China at a price below the market could disrupt trade. He also said the probe could result in import duties of 100 percent.




In the first 10 months of 2010, China imported 10 percent to 12 percent of U.S. production, industry-funded council said. U.S. exporters reported sales of 180,000 metric tons of soybeans to China for delivery before 31 August, according to U.S. Department of Agriculture. Soybeans may be "optional origin," said USDA, which means they do not have to be planted in the U.S.




Some of the driest parts of Argentina may get rain during the next 14 days after the storm this week to increase humidity in dry land in the south and the west developed, QT Weather in Chicago said today in a report. In Brazil, rainfall above the normal average of the next two weeks will maintain favorable growing conditions, fortune-teller.




Argentina soybean production may fall 17 percent to as low as 43 million metric tons in the 2010-2011 harvest as a result of drought, Buenos Aires-based research firm Economia y Regiones last month.