CHICAGO: Corn and wheat futures slipped on Wednesday, tracking falls in outside energy markets as rising Delta variant coronavirus cases raised concerns about a return to restrictions that could limit demand and overwhelmed recent weather concerns for US crops.
Chicago soyabeans traded both sides of even, supported by a private assessment of the US crop, released Tuesday after the market close, as well as uncertain forecasts across the Midwest in the coming days.
Grain markets also anticipated next week’s US Department of Agriculture monthly supply and demand report for revisions to US corn and soyabean yields and global demand.
The most-active soyabean contract on the Chicago Board Of Trade (CBOT) added 5-1/4 cents to $13.25 per bushel by 11:51 (16:51 GMT), CBOT wheat eased 5-1/4 cents to $7.19-1/4 per bushel after reaching $7.38-3/4, its highest since May 12. Corn lost 4-1/4 cents to $5.47-1/2 per bushel.
“We saw a reversal on what was leading the conversation,” said Mike Zuzolo, president of Global Commodity Analytics. “The Delta variant increase in the two largest economies of the world make the weather seem a lot less important.”
Oil prices fell to a two-week low after the US Energy Information Administration reported a rise in crude stockpiles for the week ended July 30, pulling the grain complex lower.
Soyabeans were supported by continued weather uncertainty and positioning ahead of the USDA’s monthly supply and demand report, due August 12, though a dearth of recent export sales weighs on the market. “China hasn’t committed in a real way, like they did last year,” said Dan Hussey, senior market strategist at Zaner Group.