Prices mixed as market awaits new Chinese sales

• Hopes for new US soybean sales to China
• Cut in US crop rating supports wheat
• US corn planting slower than expected

HAMBURG: Chicago soybean and grain futures were mixed on Tuesday as markets awaited signs of new Chinese demand.

A cut in US crop condition ratings supported wheat while US corn planting was also slower than expected.

The Chicago Board of Trade's most-active soybean contract was little changed, down 0.03% at $8.45-1/4 a bushel at 1057 GMT.

Wheat rose 0.4% to $4.99 a bushel while corn was up 0.1% at $3.21-1/4 a bushel.

Large Chinese purchases of US soybeans were reported last week.

"Markets are mixed today as participants await to see if China will buy more US soybeans and corn this week," said Matt Ammermann, commodity risk manager at INTL FCStone.

"Recent purchases of US soybeans by China have raised hopes the long-awaited buying under the Phase 1 trade deal are starting. But there is concern about China-US political tension over China's role in the coronavirus could hinder new sales."

"Wheat is supported by a slight drop in the condition rating of the US crop, while US corn plantings were also slower than expected."

The US Department of Agriculture (USDA) said that US farmers have planted 80% of their intended corn acreage, against anayst estimates of 81%.

The USDA said US farmers planted 53% of their intended soybean area, against an average estimate of 56% in a Reuters poll.

The USDA rated 52% of the winter wheat crop in good to excellent condition, down from 53% last week.

"More areas are starting to emerge from coronavirus lockdowns, which may stimulate more demand for corn-based ethanol fuel," Ammermann said.

"US wheat faces heavy competition from Black Sea supplies with the start of the Black Sea harvest only around a month away, which is limiting gains. The question of how much wheat demand destruction has been caused by COVID-19 is also a depressive factor."