SINGAPORE: Chicago soybeans slid for the first time in three sessions on Tuesday, with pressure from expectations of a bumper U.S. crop weighing on the market after a U.S. weekly report showed improved crop ratings.
Corn and wheat prices fell amid plentiful global supplies.
“U.S. weather has been largely favourable for crops,” said one grains trader in Singapore. “Buying in the physical market is pretty slow.”
The most-active soybean contract on the Chicago Board of Trade (CBOT) lost 1.3% to $10.27-1/2 a bushel, as of 0320 GMT. Corn fell 0.9% to $4.03-1/4 a bushel and wheat gave up 0.8% to $5.35-1/4 a bushel.
Weekly condition ratings for U.S. soybean crop improved, according to a government report issued after the market closed on Monday.
The U.S. Department of Agriculture (USDA) rated 68% of the soybean crop in good to excellent condition in its weekly crop progress report, up from 67% last week, while 14 analysts surveyed by Reuters on average had expected a drop of 1 percentage point.
The government rated 67% of the corn crop as good to excellent, down from 68% a week ago and in line with the average analyst estimate.
Soybeans, corn firm as softer dollar prompts short-covering
Rains fell over the weekend in large parts of Argentina’s central agricultural zone, arriving at a crucial time for the 2023/24 wheat crop after the driest month of July recorded in almost 60 years, the Rosario Stock Exchange said on Monday.
Russian wheat export prices remained broadly stable last week, analysts said, noting a slight rebound in export shipments.
A record heatwave in July across most Ukrainian regions may reduce the 2024 corn harvest by about 6 million metric tons from last year’s level, Ukrainian producers’ group the Ukrainian Agrarian Council has warned.
Commodity funds were net buyers of CBOT corn, soybean and soymeal contracts on Monday, and net sellers of soyoil futures contracts, traders said. Wheat traded flat.
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