CHICAGO: US soybean futures slipped on Thursday as traders took profits after a smaller-than-expected supply forecast from the US Department of Agriculture sparked the biggest one-day gain in almost two weeks.
Corn futures bounced after falling to a two-month low on a larger-than-expected harvest outlook from USDA on Wednesday, while wheat futures rose as Egypt, the top importer of the grain, made another purchase on the global market.
Traders took note of the US Federal Reserve's aggressive new stimulus program, and soybeans pared losses on the move.
However, grains did not rally hard like other commodities because corn, soy and wheat were feeling "a little bit of a hangover" after USDA's supply-demand data caused prices to swing on Wednesday, said Jason Britt, president of Central States Commodities.
US stocks added to gains on the Fed's move, the dollar fell broadly, oil prices rose and gold hit a six-month high.
"We had our thunder and lightning yesterday with the crop report," Britt said about the grains.
Chicago Board of Trade new-crop November soy slipped 0.1 percent to $17.44-1/4 a bushel by 11:25 a.m. CDT (1825 GMT). December wheat rose 1.4 percent to $9.02-1/2 a bushel, and December corn was 0.5 percent higher at $7.73-1/2 a bushel.
Bill Gary, president of Commodity Information Systems, said it was surprising the Fed decision did not give the grain markets more of a jolt.
"The dollar broke pretty hard," he said. "You'd think we would get a better reaction."
DIGESTING USDA DATA
Traders paid close attention to the USDA's report on Wednesday, as the worst drought in the United States in more than half a century has devastated crops across the Midwest.
The report estimated this year's US soybean harvest at 2.634 billion bushels, down from last month's estimate of 2.692 billion and below analysts' average estimate of 2.657 billion.
Ending soybean stocks next summer were projected to be the lowest in nine years at 115 million bushels, unchanged from August's estimate.
"This morning, the beans are pulling back just a little with traders taking some profits after the big run-up (Wednesday)," said Tomm Pfitzenmaier, a partner for Summit Commodity Brokerage.
The US corn harvest was seen at 10.727 billion bushels, down slightly from last month's estimate of 10.779 billion but above analysts' average estimate of 10.38 billion.
It would be the smallest corn crop in six years, and the lowest yield in 17 years at 122.8 bushels per acre.
EGYPT BUYS AGAIN
Egypt bought 235,000 tonnes of Russian, French and Ukrainian wheat for Nov. 21-30 shipment. The purchase was larger than originally reported; Egypt initially said it had bought just 120,000 tonnes.
It was the seventh tender in about a month by Egypt, which has been snapping up supplies as a drought reduces the Russian harvest and dry weather trims the crop in Australia.
"The Egyptian purchase underlined the export shift to France as Russian supplies are selling out," a German trader said.
Russian Deputy Prime Minister Arkady Dvorkovich accused speculators of spreading false rumors that the country would ban grain exports this year. He repeated a promise that Moscow would not impose export restrictions.
Russia roiled global grain markets in 2010 when it suspended wheat exports due to a savage drought.
Syria's state-run General Establishment for Cereal Processing and Trade also entered the market, buying 50,000 tonnes of Russian or Ukrainian wheat in a tender. An official said Syria will soon issue a tender for 100,000 tonnes of wheat.
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