Price of soyabeans tumbles as rains boost crop

Soyabeans lost value today, as investors bet that rains in the US Midwest will improve growing conditions and enhance the 2013 crop.

Late in the New York trading session, soyabean futures for November were down 2.4% at $13.47 a bushel, the largest decline seen in a week and a half. The price of corn also slid, with the December futures contract dropping 0.4%.

The soyabean crop has been marred in recent weeks by hot, dry weather across the US Midwest which had been feared might lower yields. This led to advances in the price of soyabeans for six weeks in a row, culminating in the US Department of Agriculture (USDA) dropping its forecast by 3% for the soyabean crop last week.

But in just the last few days, large amounts of rain have fallen in the north of the Midwest and weather forecasts now indicate that vital rain will fall across major soya-growing areas in the southwestern Midwest throughout next week and perhaps beyond. Such rains would likely bring a halt to the detrimental conditions and this has weighed on sentiment in the soyabean market today.

Soyabeans is the second-largest crop produced in the US after corn.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.