Soybeans Fall as Rain Improves Soil Moisture, Boosts U.S. Crops

July 27 (Bloomberg) -- Soybeans dropped for a second straight session on speculation that rain will improve development of the second-biggest U.S. crop, which had been stunted by dry conditions during the past month.

Most Midwest fields will receive normal to above- average rainfall during the next week, said Mike Tannura, a meteorologist at T-Storm Weather in Chicago. Farms from Texas to Georgia may receive more than five times the normal rainfall in the next five days, boosting depleted soil moisture, Tannura said today in a note to clients.

“The weather looks very good,” said Mark Schultz, a vice president for Northstar Commodity Investments in Minneapolis. “Soybean yields are determined in August, and the forecasts are promising some relief.”

Soybean futures for November delivery fell 8.5 cents, or 0.9 percent, to $9.065 a bushel on the Chicago Board of Trade. Last week, the price dropped 0.9 percent.

As of July 19, soybean crop conditions in the top 18 producing states were the best in five years, according to the U.S. Department of Agriculture. Ratings for the week ended July 26 were unchanged from a week earlier, with 67 percent of the crop in good or excellent condition, the USDA said today in a weekly report,

“The crop conditions will likely remain high,” Schultz said before the report. “Rains helped a few dry spots and cool temperatures limited heat stress.”

Soybeans are the second-biggest U.S. crop, valued last year at $27.4 billion, government figures show, behind corn at $47.4 billion. The U.S. is the world’s largest producer and exporter of both commodities.