CHICAGO: Chicago Board of Trade grain and soybean futures fell on Monday after favorable weekend rains in the US Farm Belt and on expectations that approaching autumn harvests will boost supplies.
Rains across Iowa and Minnesota benefited crops, brokers said, after dryness threatened fields in parts of the Midwest earlier this summer.
“The debate is on: How much did that rain help us?” said Don Roose, president of Iowa-based brokerage US Commodities. “The vote today is it helped.”
The US Department of Agriculture is expected to rate 56% of the country’s soybean crop in good to excellent conditions, unchanged from the previous week, according to analysts polled by Reuters. They expect the agency to rate 59% of corn as good to excellent, down from 60% a week earlier.
“Although rains are late for US corn, most of the northern/central Midwest is getting a nice drink,” said Matt Ammermann, StoneX commodity risk manager. “Temperatures are forecast to remain about normal, which is positive news for US crops.”
Most-active soybeans fell 23-1/4 cents to $13.00 a bushel by 1:05 p.m. CDT (1805 GMT) at the CBOT. Corn fell 13 cents to $5.40-3/4 a bushel, while wheat dropped 7 cents to $7.25-1/2 a bushel.
Traders are adjusting positions ahead of first notice day on Tuesday, analysts said. Deliveries against CBOT September grain and soy futures should be minimal, traders and analysts said, citing dwindling supplies left from the 2020 US harvest and firm cash markets.
Analysts are also assessing disruptions to grain exports from Hurricane Ida at a time when global supplies are tight and demand from China is strong.
Cargill Inc said a grain terminal in Reserve, Louisiana, sustained significant damage.
In other export news, Egypt’s state grains buyer bought 120,000 tonnes of Romanian wheat and 60,000 tonnes of Ukrainian wheat in an international tender.