LONDON/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 0.6percent to USD11.87-1/4 a bushel by 1100 GMT. Wheat slipped 0.9percent to USD6.39-3/4 a bushel, while corn fell 1.2percent to USD4.57-1/2 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 68percent of the nation’s corn crop was in good or excellent shape as of Sunday, up from 67percent a week earlier. The soybean crop was rated 65percent good to excellent, up from 64percent 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.
Dealers were also keeping a close watch on restrictions on grain shipments through the Sea of Azov following Ukraine attacks on tankers and other commercial vessels in the area.
“If it continues for an extended period, wheat supplies could become noticeably scarce,” Commerzbank said in a note. Around one-quarter of Russia’s grain exports pass through the Sea of Azov. The restrictions on shipping entering and exiting the sea went into force on Friday.
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