Soybeans fall on crop development; wheat steady on short-covering

CHICAGO: Chicago soybean futures slid on Monday on reports of healthy crop development across much of the U.S. Midwest, as concerns about a potential bumper crop cooled market enthusiasm over recent strong Chinese demand.

Private exporters reported the sale of 390,000 tonnes of soybeans to China for delivery in the 2020-2021 marketing year, the U.S. Agriculture Department said Monday.

Corn futures weakened on forecasts of crop-boosting rain in the Midwest, which is expected to ease the impact of recent hot weather.

"Adding to that, the equity markets came unglued overnight around the world, and that was a bit of a push, too," said Don Roose, president of U.S. Commodities in West Des Moines, Iowa.

Weakening crude oil prices also weighed on grain futures Monday, as coronavirus cases continue to rise, feeding fears that new lockdowns could hamper economic recovery and erode fuel demand.

Wheat futures traded sideways, still pressured by abundant supplies forecast in a U.S. government report last week. Leading Russian consultancies revised forecasts for this year's Russian wheat harvest, tempering concerns about the effects of a dry spring.

But losses were kept in check by short-covering, traders said, as the market is seen as technically oversold after the most-active contract hit a near one-month low Friday.

The most-active wheat contract on the Chicago Board Of Trade (CBOT) was almost unchanged by 11:23 GMT, down 0.05% at $5.01-3/4 a bushel.

Soybeans slipped 0.29% to $8.68-3/4 a bushel and corn lost 0.45% to $3.28-1/2 a bushel.

China has stepped up purchases of U.S. soybeans in recent weeks, supporting prices.

U.S. soybean crushings fell 1.3% in May, missing most analyst estimates, while end-of-month soyoil stocks declined from a near seven-year high, according to National Oilseed Processors Association (NOPA) data released on Monday.