HAMBURG: Chicago soybean and corn futures fell on Tuesday after the US Department of Agriculture (USDA) gave an overall reasonable picture of the condition of US crops.
The US wheat harvest was also making rapid progress against the background of ample global wheat supplies.
Chicago Board of Trade most-active soybeans were down 0.8% at $8.60 a bushel at 1039 GMT and corn fell 0.07% to $3.68 a bushel. Wheat fell 0.1% to $4.74-1/2 a bushel.
In its weekly crop progress report after the market close on Monday, the USDA said 55% of the US soybean crop was in good-to-excellent condition, up from 53% last week and above analyst forecasts of 54%.
The USDA increased its good-to-excellent rating for the US corn crop to 57% from 56% last week. Analysts had expected 57%.
“Corn and soybeans are down today after the USDA gave a decent assessment of the US crops on Monday with no immediate reason to factor in extra risk today,” said Matt Ammermann, commodity risk manager with INTL FCStone.
“The market knows that a warm September is needed to get the US soybean crop to full maturity so there is quite some way to go. There will also be a race to get the US corn crop to fully mature ahead of the frost season.”
“But the USDA has again given a reasonable picture of the US crop so prices are weaker today.”
The USDA said some 38% of spring wheat had been harvested, up from 16% last week and above analyst forecasts of 29%. The winter wheat harvest is 96% finished, up from 93% last week.
Wheat faces headwind from increased competition in global markets, with large supplies especially in the Black Sea region.
“The wheat markets is … under pressure from large supplies especially from Russia and weather seems to be helping the US corn crop,” said Phin Ziebell, agribusiness economist at National Australia Bank.
The market is awaiting results of an international tender from Egypt, the world’s top importer, to buy wheat.
Soybeans rallied on Monday on hopes the United States and China could move towards an agreement to end their trade war.
“The US/China trade war has faded as a factor today with the market wanting to see evidence of more concrete progress rather than general comments from the leaders,” Ammermann said.