CHICAGO: US soyabean futures dropped 1.1% on Wednesday on a round of profit-taking after rallying on Tuesday, traders said.
Wheat futures also were lower after some rain in the northern US Plains eased some concerns about parched soils limiting the size of the crop.
Corn futures were firm, with gains in the nearby contracts outpacing strength in deferred offerings.
But both corn and soyabean futures bounced off their session lows as the midday weather outlook for the US Midwest showed less rain in the forecast than previous outlooks.
“Through the rest of June we will be trading every weather forecast,” said Brian Hoops, president at Midwest Market Solutions. “It was wetter overnight and then at midday it is starting to get a little bit drier again.”
At 12:05 p.m. CDT (1705 GMT), CBOT July corn futures were up 12-1/2 cents at $6.92-1/2 a bushel. CBOT December corn was up 1 cent at $6.10-1/2 a bushel.
CBOT July soyabeans were 16-1/4 cents lower at $15.63-3/4 a bushel.
Weakness in the global vegetable oil markets added pressure to soyabean futures.
Palm oil, which competes with soyabean oil, dropped nearly 5% on Wednesday due to rising palm oil supply and lower export estimates.
CBOT July soft red winter wheat was 4-1/2 cents lower at $6.80-1/2 a bushel.
Market attention is turning toward the USDA’s monthly world supply and demand outlook on Thursday, with analysts on average expecting the agency to cut its projections for US corn stocks, against a backdrop of brisk Chinese demand and Brazil’s drought-affected corn crop.
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