The crash in corn prices is spilling over into soybeans. As a result, Brazil will grow more of the higher-value oilseed, helping push global markets into a record glut and replacing the U.S. as the top producer.
Soybeans fell from a 10-week high on speculation that higher cash prices prompted U.S. farmers to increase sales and as rains boosted crops in South America. Wheat also declined, while corn was unchanged.
Surging supplies of U.S. corn and soybeans coupled with higher revenue for specialty crops will boost farm incomes to a record this year even after grain prices fell, the U.S. Department of Agriculture said.
Soybeans fell from a two-month high after China canceled orders for U.S. supplies and rain boosted the outlook for developing crops in Brazil, the world’s biggest producer and exporter. Corn and wheat also declined.
Corn futures fell, extending a slump to a 38-month low, on speculation that the government will forecast a bigger crop than estimated two months ago in the U.S., the world’s top leading producer. Soybeans gained.
Corn rebounded from the lowest price in three years after the government predicted smaller harvest gains than analysts forecast in the U.S., the world’s largest grower and exporter. Soybeans rose the most in eight weeks.