PARIS/SINGAPORE: Chicago soyabean futures were little changed on Tuesday after hitting their lowest in nearly a month as traders waited to see if a US government report would support expectations of improved harvest prospects.
Corn edged higher, halting a five-day fall, as investors adjusted positions before the US Department of Agriculture’s (USDA) monthly world crop report at 1700 GMT, in which the agency is also expected to raise its estimate for US corn production.
Wheat also ticked up.
The most active soyabean contract on the Chicago Board of Trade (CBOT) was down half a cent at $11.88 a bushel by 1249 GMT, having dropped earlier in the session to its lowest since Oct. 13 at $11.86-3/4.
Increasing expectations for higher yields in the advancing US soyabean harvest, along with favourable planting conditions in Brazil and easing Chinese import demand, have weighed on soyabean prices.
A five-week low for Malaysian palm oil, as it retreats from last month’s record highs, was also pressuring the rest of the oilseed complex.
“The context is not favourable for soyabeans,” one European trader said.
Harvest progress in the United States and signs that a delayed Ukrainian harvest is reaching the market have also curbed corn prices.
However, traders see potential upside for corn if farmers shift away from the crop next year because of high fertiliser prices.
CBOT corn was up 0.4% at $5.53-3/4 a bushel and wheat rose 0.7% to $7.73-1/4 a bushel.
Tunisia issued a tender to buy 100,000 tonnes of wheat, signalling fresh import demand after a lull in the past week.