Chicago soybeans and corn fall on improving US crop conditions

BEIJING: Chicago soybean and corn futures fell on Tuesday after the US Department of Agriculture said crop conditions improved, though hot weather risks remain.

The most-active soybean contract on the Chicago Board of Trade (CBOT) was down 0.5% to $11.88-1/4 a bushel by 0220 GMT.

Wheat slipped 0.1% to $6.34-1/2 a bushel, while corn fell 1.1% to $4.58-1/4 a bushel.

Condition ratings for US corn and soybean crops improved slightly last week, the USDA said in a weekly report on Monday, as the risk of hot and dry weather loomed.

The agency said 68% of the nation’s corn crop was in good or excellent shape as of Sunday, up from 67% a week earlier.

The soybean crop was rated 65% good to excellent, up from 64% a week earlier.

The USDA has projected an average US 2026 corn yield of 183 bushels per acre (bpa), which would be the second-highest on record after last year’s all-time high of 186.5 bpa, but stressful heat could knock down crop prospects.

US corn and soybean futures hit their highest levels in more than a month on Monday as weather risks and renewed tensions in the Middle East lifted prices.

Hot and mostly dry weather was forecast for the western half of the US Midwest crop belt this week and potentially extending into next week, threatening crop yield potential.

The USDA reported export inspections of US soybeans in the latest week at 418,592 metric tons, in line with trade expectations for 300,000 to 600,000 tons.

The agency reported export inspections of US corn in the latest week at 1,539,718 tons, towards the high end of trade expectations for 1,100,000 to 1,600,000 tons.

Shipping in the Sea of Azov, the route for a quarter of Russia’s grain exports, remained restricted on Monday for security reasons following Ukrainian attacks on tankers and other commercial vessels in the area.

The restrictions on shipping entering and exiting the sea went into force on Friday.