Soybeans slide on improved US crop conditions

CHICAGO: Chicago soybean futures fell on Tuesday, despite renewed exports to China, after the US Agriculture Department issued better-than-expected weekly crop ratings.

Corn also eased on better-than-expected crop conditions as traders eye record yield potential this fall. Wheat, meanwhile, rose as a weaker US dollar made the crop more competitive on the world export market.

The Chicago Board of Trade's most active soybean contract fell 6-1/2 cents to $8.96-1/2 per bushel by 11:42 a.m. (1642 GMT).

CBOT corn was down 5-1/2 cents at $3.22-3/4 a bushel and wheat added 7-1/4 cents to $5.29-1/4 a bushel.

In its weekly crop report after markets closed on Monday, the US Department of Agriculture rated 69% of soybeans in good-to-excellent condition, up from 68% last week. Analysts had expected 67%.

"This is one of the highest-rated bean crops we've had - ever," said Chuck Shelby, president of Risk Management Commodities.

China booked 126,000 tonnes of US soybeans for delivery in the 2020/21 marketing year, the USDA said on Tuesday.

"I think we're really going to need to see some more significant Chinese purchases to push the bean market and stay above $9.00," said Shelby.

The USDA said 69% of US corn was in good-to-excellent condition, unchanged on the week. Analysts had expected 68%.

"We're going to have a record corn yield," said Joe Vaclavik, president of Standard Grain. "Those ideas continue to weigh on the market."

Wheat gained off a softening US dollar, which makes US exports more attractive to international buyers.

"The weaker dollar has been a positive input for wheat," said Vaclavik. "Our exports, which have historically accounted for a tremendous portion of our demand, are just not what they need to be."

The USDA said that 74% of US winter wheat has been harvested, up from 68% last week. Analysts had expected 79%.