BEIJING: Chicago soybean futures fell on Tuesday, pressured by favourable US crop weather and weaker soyoil prices, after a sharp two-day rally.
The most-active soybean contract dipped 0.23% to $10.67 per bushel, as of 0222 GMT, snapping gains fuelled by surging crude oil and stronger US biofuel blending mandates.
Soybeans had touched a one-month high and soyoil a 20-month high on Monday.
Analysts said Iran-Israel tensions could add volatility to grain markets through energy price shocks.
“At present eyes across all markets are on what is occurring in the Middle East,” said Andrew Whitelaw, agricultural consultant at Episode 3.
“The region is a huge contributor to the energy markets, and these markets have a huge impact on grain pricing levels.” Soyoil contract dropped 0.85% at 54.64 cents per pound, as traders took profits, removing some support for soybeans.
The oilseed also continues to face headwinds from weak demand, tariff uncertainty and global competition.
Corn slipped 0.06% to $4.35 a bushel, pressured by beneficial weekend rains across key growing regions, including parts of the Plains and the northwest and southeastern Midwest.
Soybeans rise on oil rally, still on track for weekly loss
However, strong export data helped curb losses.
US corn inspections in the latest week reached about 1.67 million metric tons, at the high end of trade expectations.
Weekly condition ratings for the country’s corn crop also improved and were tied for the highest for this time of the season in several years, according to US government data.
Soybean ratings declined, rose 0.84% to $5.41 a bushel, though harvest pressure capped gains.
The US winter wheat harvest is expanding after a slow start. The USDA said the winter wheat crop was 10% harvested, up from 4% a week ago but behind the five-year average of 16%.
Analysts on average had estimated harvest progress at 11%. Commodity funds were net buyers of Chicago Board of Trade soyoil futures contracts on Monday and net sellers of corn, soymeal, wheat and soybean futures, traders said.
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