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Soybeans Fall As Output Grows

09 June 2010

BRAZIL – Soybean futures have declined in Chicago over speculation that output in Brazil, the world's second-biggest producer, will rise faster than anticipated.

Competition was stoked among suppliers as futures for July delivery dropped for the third time in just four sessions, shedding 0.3 per cent of their price and taking the oilseed to $9.28 (£6.43) a bushel, Bloomberg BusinessWeek has reported.

It is thought that Brazilian farmers will harvest at least 68.7 million tonnes of soybeans this year, significantly more than last year's 57.2 million tonnes and ahead the forecast 67.9 million.

Luke Matthews, an agricultural commodity strategist at the Commonwealth Bank of Australia, told the news wire that investors are awaiting the next supply-and-demand outlook to be released by the US Department of Agriculture.

He said: "Soybean prices, to our mind, have a downward bias because of the supply response."

Last week, major finance organisation Rabobank warned that growth in Brazil's sugar production may soon come to a rapid halt, as the risk of weather setbacks could trigger a "significant rebound".

TheCropSite News Desk

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