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US soybean futures fall after USDA forecasts huge crop

Por PJ Huffstutter

CHICAGO, USAAug 12 – Chicago soybean futures fell on Friday after a US government crop report said local soybean farmers would reap a record crop, even larger than previously forecast, traders said.

* While dry weather has hit soybean fields hard on some farms west of the Mississippi River, yields in major producing states like Illinois, Indiana and Ohio are expected to make up for any shortfall, according to the U.S. Department of Agriculture report. on estimates of world agricultural supply and demand.

* Meanwhile, U.S. corn production is forecast to be lower than previously thought as adverse weather conditions during critical development periods limited crop potential, especially in the South, the report said.

* “It was more of a bearish surprise for soybeans than a bullish one for corn,” said Craig Turner, senior trader at Daniels Trading. “Operators were looking for reductions in both.”

* Prior to the report, soybean futures on the Chicago Stock Exchange had traded higher as investors priced in expectations of a reduced crop outlook.

* The most active soybean contract on the Chicago Stock Exchange was down 0.14% at $14.4650 a bushel at 1722. GMTafter falling to $14.1525 earlier in the session.

* Corn was up 1.39% at $6.3650 a bushel, having hit its highest since July 11, while Chicago wheat was down 0.71% at $8.05 a bushel.

* The USDA raised its Ukrainian corn production forecast by 5 million tonnes on Friday, due to timely rains, and increased its Ukrainian corn export forecast by 3 million tonnes.

* Two other ships left Ukrainian Black Sea ports on Friday, including one carrying the first Ukrainian wheat to be exported under a deal brokered by the HIMreported the Turkish Defense Ministry.

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