Soybeans firmer after hitting two-year low, wheat down

HAMBURG: Chicago soybeans rose slightly on Tuesday after hitting their lowest in over two years on Monday in turn on concern about the impact of the US-China trade war coupled with good US crop weather.

Wheat remained weak after dropping 2.9 percent on Monday while corn was little changed.

"Soybeans and corn are seeing some support today as enough of the fear factor about the US-China trade war seems to have been taken out of prices in falls yesterday," said Matt Ammermann, commodity risk manager with INTL FCStone. "Wheat is being weakened by good progress being made in the US winter wheat harvest."

Chicago Board of Trade most-active soybeans were up 0.2 percent at $8.97-3/4 a bushel at 1056 GMT. Monday saw the lowest close for a front soybean contract on a continuous chart since March 2016.

Corn was unchanged at $3.50-1/2 a bushel and wheat fell 0.2 percent to $4.89-1/2 a bushel.

Grains had fallen on Monday on reports that the US Treasury was drafting plans to block firms with at least 25 percent Chinese ownership from buying US companies with industrially significant technology.

"While the next stage of US-China trade politics is awaited, the market is pausing, awaiting the US Department of Agriculture (USDA) US acreage and quarterly grain stocks reports on Friday," Ammermann said.

Positive overall US crop weather is boosting hopes of bumper harvests of corn and soybeans.

After the market closed on Monday, the USDA rated 73 percent of the US corn crop in good-to-excellent condition, among its highest ratings for this time of year since the mid-1980s.

The USDA also said 41 percent of US winter wheat had been harvested, against 27 percent a week ago and a 5-year average at this point of 33 percent.

"The US winter wheat harvest is moving forward generally well with no major weather problems so far," Ammermann said. "The market is also awaiting the result of the new international wheat tender from Egypt, especially whether Romanian wheat will again dominate the sales."