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Agricultural News: Soybean Futures Hit a 6-Week Low as the US Has Quickest Harvest Ever, So Far


Plus, German-based BASF makes a major agricultural acquisition, and more!

MINYANVILLE ORIGINAL On Monday, US soybean futures dropped to a six-week low, as profit-taking has driven prices from a record-breaking high of nearly $18 per bushel on September 4, according to Reuters. The sell-off has been fueled by reports of a larger than expected soybean yield so far, and what will likely be a bumper crop in South America. Many investors have exposure to soybeans through the Teucrium Soybean Fund (NYSEARCA:SOYB).

Corn and wheat futures have remained relatively unchanged. In the past week, corn for December delivery has stayed in the $750 range, while wheat for December delivery has been a little more volatile, swinging between $865 and $905 per bushel. Many investors have exposure to corn through the Teucrium Corn Fund (NYSEARCA:CORN), and to wheat through the Teucrium Wheat Fund (NYSEARCA:WEAT).

A myriad of threats to the 2012 US crop, including a drought widely reported to be the worst since 1956, and more recent concerns over the development of life threatening mold in the US corn crop -- leading grain processors like Archer Daniels Midland (NYSE:ADM) to reject some farmers' corn shipments -- have been washed away not only by late-season showers, but also by this year's record-breaking harvest.

If this year's drought was the metaphorical cloud over agriculture this year, the silver lining has been the speedy harvest. The US corn harvest is progressing at three times the normal speed, with over 26% of the corn crop culled by last week, and 39% of the total harvest taken in as of September 23. This is far beyond the previous record-high, set two years ago, when the same percentages of the corn crop wasn't harvested until November.
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