(Bloomberg) -- Soybean prices plunged to a fresh three-year low as the outlook for rain in drier parts of the US Midwest helped quell emerging concerns about potential yield losses.
Futures for November delivery of the oilseed used in everything from chicken feed to truck fuel lost as much as 2.9% in Chicago to $10.18 per bushel, the lowest since October 2020 for a most-active contract.
The forecast for near-normal rains across the Midwest in the next two weeks — following some dryness in the western part of the farm belt — offers traders further indication that the US in on course for a bumper harvest. Meanwhile, export sales of the incoming production have been slow, fueling concerns about demand.
In China, the world’s largest buyer, stockpiles of soybean meal have surged to their highest level in more than five years amid weak demand for animal feed. Soybean crushing margins have plunged below zero, meaning there’s reduced incentive for processors in the nation to secure additional supplies of the oilseed.
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