Soybeans, corn, wheat retreat from highs, U.S. crop eyed

• U.S. soybean, wheat and corn futures fell on Wednesday as profit taking kicked in after strong rises this week.
• Soybeans rose 1.4pc on Tuesday, hitting their highest since July 22 at $9.20 a bushel as Chinese purchases and a lower-than-expected estimate of U.S. stockpiles supported prices.

HAMBURG: U.S. soybean, wheat and corn futures fell on Wednesday as profit taking kicked in after strong rises this week, with a stronger dollar and good U.S. weather forecasts also undermining sentiment.

Still, recent Chinese purchases of U.S. soybeans and lower-than-expected estimates for North American supplies limited losses.

Chicago Board of Trade most-active soybeans were down 0.5pc at $9.14-3/4 a bushel at 1037 GMT.

Soybeans rose 1.4pc on Tuesday, hitting their highest since July 22 at $9.20 a bushel as Chinese purchases and a lower-than-expected estimate of U.S. stockpiles supported prices.

Most-active corn fell 0.7pc to $3.89-1/2 a bushel, having risen on Tuesday as the quarterly U.S. Department of Agriculture (USDA) grain stocks report showed corn and soybean inventories below traders' expectations.

Most-active wheat fell 1.05pc to $4.93-1/2 a bushel.

"Soybeans, corn and wheat markets are all seeing a pullback today with some profit taking and re-positioning after their strong rises this week," said Matt Ammermann, commodity risk manager at INTL FCStone. "The dollar remains in a strong trend around two-year highs, which is a burden for U.S. exports."

Phin Ziebell, agribusiness economist at National Australia Bank, added: "There is some unwinding of positions weighing on prices.

The outlook is uncertain, there are some Chinese purchases, but the U.S.-China trade talks are volatile."

Chinese firms purchased up to 600,000 tonnes of U.S. soybeans on Monday as part of a tariff-free quota allotted to importers to buy up to 2 million tonnes this week.

The deals offered some support to a market worried that the prolonged U.S./China trade war will continue to depress Chinese imports of U.S. soybeans.

INTL FCStone on Tuesday raised its estimate of the average U.S. 2019 corn yield to 169.3 bushels per acre, from 168.4 in its previous monthly report released on Sept. 4.

"INTL FCStone's estimates on Tuesday underlined a generally positive picture of the U.S. corn crop," Ammermann said. "With no major frosts forecast in U.S. corn areas, there is no visible reason for extra crop concern today."

Markets were awaiting the outcome of a new international wheat purchase tender from major importer Egypt.

"Unfortunately it looks like the Black Sea region and Europe will continue to dominate such tenders with U.S. wheat not seen with much of a chance," one trader said.