U.S. soybean prices hit their lowest levels in over four years following expectations by federal forecasters for record breaking harvests exceeding forecasts by analysts. The fall in soybean prices also came alongside wheat and other grains on Thursday, reports Bloomberg.
Federal forecasters had predicted record soybean production at 3.913 billion bushels on yields of 46.6 bushels an acre. Analysts had expected that the USDA would raise its forecast for soybean output by 1.7 percent to 3.882 billion bushels and its yield to be near 46.2 bushels an acre. September soybeans, the front-month contract, dropped to its lowest level since October 2010 by 9.5 cents, or 0.9 percent, to $10.615 a bushel. November soybeans, also traded lower 12.25 cents, or 1.2 percent, to $9.815 a bushel, reports Reuters.
The recent weather has continued to remain favorable, with increased rainfall in the Midwest and northern Great Plains in August. This eliminated any potential heat waves while recently, the upper Midwest has been threatened by an early frost, but a lot of traders forecast that at this stage of the growing season, colder weather could inflict only little damage to domestic crops. Meanwhile, on Thursday areas of South Dakota and Wyoming received snow.
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