CHICAGO: US soybean futures fell 1.2% on Tuesday, pressured by weather forecasts that eased concerns about dryness in key production areas of crop development in Brazil and South America, traders said. Corn and wheat futures also were lower, but the declines were kept in check. Traders said an equities market rally and easing concerns about the spread of the Omicron coronavirus variant lent support but a firm dollar added pressure.
“The grains are kind of caught in a little bit of a tug of war,” said Jim Gerlach, president of Indiana-based broker AC Trading. “We are stuck in definitive ranges right now. It is going to take something big to break out of these ranges.” Grain markets were also watching for the outcome of a call between US President Joe Biden and Russian counterpart Vladimir Putin as a gauge of tensions over Ukraine, which like Russia is a major grain exporter through the Black Sea.
At 10:37 a.m. CST (1637 GMT), Chicago Board of Trade March corn futures were down 3 cents at $5.80-1/2 while CBOT March wheat was off 3-3/4 cents at $8.02-1/2 a bushel.
CBOT January soybeans were 16 cents lower at $12.45-1/2 a bushel. Traders were watching to see if the US Department of Agriculture adjusted its outlook for Chinese import demand in its monthly world supply and demand estimates due on Thursday.
The USDA’s view of the world wheat balance sheet also was in focus due to Russia’s quota plans and the upcoming harvest of what is expected to be a large, mixed-quality crop in Australia.
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