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Grains Drop After USDA Report

February 10, 2015 at 22:49 by Vladimir Vyun

Prices for grains dropped today after the release of the World Agricultural Supply and Demand Estimates from the US Department of Agriculture. The report was particularly negative for soybeans, saying:

Global oilseed production for 2014/15 is projected at a record 532.1 million tons, down slightly from last month. Global soybean production is raised 0.7 million tons to a record 315.1 million. Prospects for the Argentina soybean crop have improved with ample moisture and mild temperatures. As a result, the crop is projected at a record 56.0 million tons, up 1.0 million.

At the same time, the agency left its price forecast unchanged at $9.45 to $10.95 per bushel.

The report was also negative for wheat, which turned out to be the biggest loser among grains, predicting an increase of global supply and smaller demand for US exports. While estimates for corn were less bearish, showing a drop of US inventories, the crop fell nonetheless.

March futures for delivery of corn declined 0.83 percent to $3.88 per bushel as of 22:46 GMT on CBoT today. Contract for soybeans lost 0.97 percent to $9.69 per bushel. Wheat dropped as much as $5.2175 per bushel.

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