Soybean futures fell to a 15-month low on Thursday as wetter conditions in the Midwest improved prospects for this year's U.S. crop.
Oilseed contracts for July delivery fell 1.6% to $9.04 a bushel, the lowest close since March 21, 2016.
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The losses come as weather forecasters show more rain in the Midwest adding moisture to the soil, which is increasing the likelihood of a plentiful harvest this season.
That's worried traders concerned about too much oilseed in the world. Soybean prices have been under pressure for much of 2017 as farmers in Brazil produce their largest harvest on record. Large South American supplies are expected to eat into global export demand for U.S. oilseed, swelling domestic stockpiles. Analysts say Brazil's large corn harvest could also affect U.S. grain exports.
"Brazil is offering both corn and soybeans at sizable discounts to the United States through the remainder of the old crop months," Karl Setzer, risk manager at MaxYield Cooperative in West Bend, Iowa, said in a note to clients. "This has started to temper demand for U.S. commodities, and could easily affect balance sheets before year end."
CBOT July corn futures fell to the lowest point since mid-May, shedding 1.6% to close at $3.62 3/4 a bushel as traders scaled back a recent weather-related rally.
Wheat futures were mixed. Traders took profits on CBOT winter wheat futures, with July contracts falling 0.7% to $4.61 1/4 a bushel.
Spring wheat futures rose as weather issues in the northern Plains have hurt the condition of the crop grown there. Light showers forecast in the region will not be enough to ease the stress, says MDA Weather Services.
July-dated spring wheat futures rose 1.2% to $6.56 1/4 a bushel at the Minneapolis Grain Exchange, continuing to trade at a two-and-a-half year high on the back of these concerns.
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(END) Dow Jones Newswires
June 22, 2017 15:38 ET (19:38 GMT)