Corn, wheat soybeans up after US crop report misses forecasts

HAMBURG: Chicago wheat, corn and soybean prices rose on Tuesday after a US Department of Agriculture (USDA) report said the condition of US crops was not as good as expected.

Chicago Board of Trade most-active corn was up 0.3% at $3.37-1/2 a bushel at 1056 GMT, having fallen more than 2% on Monday on improving US crop weather.

Soybeans were up 0.4% at $8.78-3/4 a bushel. Wheat rose 1.0% to $5.30 a bushel after also falling on Monday.

The USDA's weekly US crop condition report after Monday's close rated 69% of the US corn crop in good-to-excellent condition, down from 71% last week. Analysts on average expected 70%.

It rated 68% of the US soybean crop in good-to-excellent condition, down from 71% last week with analysts expecting 70%.

"Corn, wheat and soybeans are seeing support from the reduced crop conditions ratings from the USDA coupled with bargain-buying interest after Monday's price falls," said Matt Ammermann, StoneX commodity risk manager.

"It is the second week in succession in which corn ratings have been cut and so some concern about recent dryness stress to US crops could start to be a market theme if this continues.

"But the deterioration in US crop conditions is certainly not a disaster and the USDA report is being weighed against forecasts of better weather for US crops," he added.

The USDA rated 68% of US spring wheat in good-to-excellent condition, down from 70% last week with 70% expected by analysts. Some 68% of US winter wheat was harvested, against 56% last week and 70% expected by analysts.

"US spring wheat condition deteriorated but the US winter wheat harvest is progressing well," , Ammermann said. "Markets continue to look for talk about Black Sea harvest yields, while overall global wheat import demand is not exactly booming after the COVID-19 crisis."