PARIS/CANBERRA: Chicago soybean and corn futures steadied on Tuesday after a slide in oil prices and beneficial rain in major producer Brazil dragged them down to multi-year lows in the previous session.
Wheat futures also rose slightly after a sharp drop on Monday, with tenders called by importers including Egypt providing some support.
The most-active soybean contract on the Chicago Board of Trade (CBOT) was up 0.2% at $12.48-1/4 a bushel by 1244 GMT, after slumping to $12.36 on Monday, its lowest since December 2021.
Soybeans, corn fall as Brazil expected to get more rain
CBOT corn added 0.3% to $4.56-1/4 a bushel after touching $4.52 on Monday, the lowest since December 2020.
A day-earlier drop in crude oil, fuelled by Saudi price cuts, weighed on commodity markets, including corn and soybeans that are used to make biofuel.
Oil regained some ground on Tuesday, while grain markets were shifting their attention to crop forecasts later this week that will give an indication on harvest prospects in Brazil.
“The macro mood is on the bearish side ahead of a busy week for agriculture markets,” Peak Trading Research said in a note. “Better Brazil weather and weak US export prospects are bearish fundamental headwinds.”
In Brazil, a key soybean and corn grower, recent and forecast rains have reduced concerns about drought losses as farmers begin to reap 2023/24 crops.
Brazilian statistics agency Conab is due to update its official forecasts this week while the US Department of Agriculture will release its monthly world crop report.
Weather charts pointed to heavy rain in a swathe of Brazil this week before drier conditions next week.
“Brazil’s likely weather this week will give the market more comfort with lower corn and soybean prices,” said independent analyst Tobin Gorey.
US exports of soybeans and wheat have been lacklustre and a strengthening dollar since late December has made US goods less competitive in export markets.
CBOT wheat was up 0.4% at $5.98-3/4 a bushel as it hovered around the psychological $6 threshold.
Wheat fell about 3% on Monday but remains above September’s three-year low of $5.40.
Wheat traders were awaiting results in a tender being held on Tuesday by Egyptian state buyer GASC, with Ukrainian wheat being offered cheapest before shipping costs.
Other wheat tenders called this week by importers suggest low prices have encouraged demand, though traders said a hefty Russian surplus and expanding Ukrainian exports through a wartime Black Sea corridor remained a curb on the market.
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