Soybeans Tumble Most in 14 Months on Favorable U.S., South America Weather

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Soybeans Tumble Most in 14 Months on Favorable U.S., South America Weather

Soybeans fell the most in more than 14 months as dry weather allows U.S. farmers to accelerate the pace of the harvest, while rain in Brazil and Argentina improves crop conditions.

Few showers are forecast over the next two weeks in U.S. growing areas, T-Storm Weather LLC said today in a report. Rains this week in South America improved soil moisture for planting crops, with more moisture expected in some northern regions next week, the private forecaster said. The U.S. is the biggest producer and exporter, followed by Brazil and Argentina.

“The U.S. harvest is moving forward, and farmers are reporting tremendous yields,” said Dax Wedemeyer, an analyst and broker for U.S. Commodities Inc. in West Des Moines, Iowa. “The rains in Brazil were helpful this week for boosting planting progress, and more will be needed later this month for early development.”

Soybean futures for November delivery fell 49.75 cents, or 4.5 percent, to close at $10.57 a bushel at 1:15 p.m. on the Chicago Board of Trade, the biggest drop for a most-active contract since July 2009. Prices fell 6.1 percent this week, the most in 13 months.

On Sept. 27, the commodity reached an eight-month high of $11.44 on speculation that rains may damage U.S. crops and dry weather would delay planting in South America. Prices rose 23 percent in the July-through-September period, the biggest quarterly rally since the second quarter of 2008.

U.S. production will total 3.483 billion bushels, up 3.7 percent from a record 3.359 billion last year, the U.S. Department of Agriculture said Sept. 10. The government is scheduled to update its forecast on Oct. 8.

The U.S. soybean crop was valued at $31.8 billion last year, second only to corn, government figures show.