Soybeans decline as warm weather boosts planting

NEW YORK (AP) -- Soybean prices declined Monday as dry Midwest weather allowed farmers to resume planting after massive flooding that engulfed fields and drove agriculture futures to record highs.

Other commodities traded mixed, with crude oil gaining and gold, silver and copper prices falling.

Warm, dry weather has returned to Midwestern states and is expected to hold for the near term, giving soybean farmers a chance to finish spring planting cut short by devastating floods in the region over the last two weeks. The government next week will give a partial idea of how many acres were lost, though some estimates say 2 million acres or more were affected; before the floods, farmers were expected to plant 86 million acres of corn.

The improved weather conditions pushed soybeans lower, with the November contract falling 6.5 cents to settle at $15.025 a bushel on the Chicago Board of Trade, after earlier dipping as low as $14.76 a bushel.

"There's drier weather in the forecast and that actually is going to affect soybean supply because there are still people planting," said Elaine Kub, analyst with DTN in Omaha.

Corn futures ended the day slightly higher after an initial drop, but Kub said prices are expected to remain in a holding pattern until farmers get a better idea of the yield size of this year's crop. Corn crops have already emerged in much of the Midwest, but agriculture officials won't have yield estimates until August.

"The issue for corn isn't acres anymore, but yield. That's the big unknown," Kub said. "Cosmetically, these fields look better but that doesn't mean yields will improve," Kub said.