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Prospects for Higher Yield Hurt Soybean Prices

November 25, 2013 at 17:38 by Vladimir Vyun

Soybeans dropped today on speculations that favorable weather in South America will boost yield. Forecasters predict that Brazil will receive 6.4 centimeters of rains in the next five days that should ease drought in the biggest world supplier. Argentina will also receive precipitation this week.

The US Department of Agriculture estimated last month that Brazil will produce record 88 million metric tons, while Argentina’s harvest may surge 8.5 percent to 53.5 million tons. This may lead to record global output. As a result, soybean prices have dropped 6.4 percent so far this year.

January contract for delivery of soybeans lost $0.0300 (0.23 percent) to $13.1650 per bushel as of 17:36 GMT on CBoT today.

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