Soybean stocks were reduced by the U.S. Agriculture Department amid a more than anticipated crush answering rising production of soyoil and soymeal, according to The Wall Street Journal.
But the federal department boosted forecasts for wheat stocks due to reduced exports, which pulled down wheat futures on Tuesday. Soybeans, which also were edging down in value on Tuesday, are one of this year's success stories on the commodity complex, according to senior broker Kurt Pfafflin with Daniels Trading.
"Global wheat supplies for 2012-13 are projected 1.6 million tons higher as a 3.7-million-ton increase in world production more than offsets lower beginning stocks, mostly reflecting higher 2011-12 wheat feeding for China," according to the once-monthly USDA report, as cited by Bloomberg. "China wheat production for 2012-13 is raised 2.6 million tons, based on the latest official estimates from the National Bureau of Statistics."
At 9:40 a.m. on Tuesday, wheat futures fell 2.06 percent, a 0.175-cent loss to $8.3125 per bushel. At 9:41 a.m., soybean futures fell 0.05 percent, a 0.0075-cent slide to $14.74 per bushel.
Two big South American producers of soybeans endured mixed weather this past weekend, Cattle Network reports. Planting was delayed in Argentina due to arid conditions while showers in Brazil helped crops.
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