Soybeans Decline as U.S. Exports Fall to Eight-Month Low

May 24 (Bloomberg) -- Soybeans fell, erasing an earlier gain, after a government report showed U.S. shipments of the oilseed fell last week to the lowest level since September.

The U.S. inspected 3.901 million bushels for export in the week ended May 20, down 57 percent from a week earlier, according to the Department of Agriculture. The euro plunged as much as 1.8 percent against the dollar after the Bank of Spain took over a failing lender. A stronger dollar makes U.S. commodities more expensive for foreign buyers.

“Soybean export-inspections were poor last week,” said Mario Balletto, a grains and oilseed analyst for CitiGroup Global Markets Inc. in Chicago. “People are concerned that demand may slow more quickly” as supplies from Brazil and Argentina, the biggest exporters after the U.S., become relatively cheaper because of the dollar’s rise.

Soybean futures for July delivery fell 0.5 cent to $9.405 a bushel on the Chicago Board of Trade, the eighth decline in nine sessions. Prices are down 5.9 percent this month.

Sales of U.S. soybeans from Sept. 1 to May 13 rose 14 percent to 38.119 million metric tons from 33.523 million in the year-earlier period, USDA data show.

Brazil and Argentina may harvest a combined 122 million tons this year, up 36 percent from a drought-reduced harvest of 89.8 million tons last year, the USDA said earlier this month.

The soybean crop in the U.S., the world’s largest grower, was valued at $31.8 billion last year, second only to corn at $48.6 billion, government figures show.