Soybeans stable, corn and wheat fall on positive US crop

• The weekly crop progress report from the US Department of Agriculture (USDA) after the market close on Monday said 57pc of US corn crops were in good-to-excellent condition.
• US spring wheat harvesting and winter wheat plantings accelerated slightly faster than market expectations.

HAMBURG: Chicago soybean futures were steady on Tuesday with support from news of US export sales to China, while a positive US crop conditions report weakened corn and wheat.

Rain in west and east Europe also provided a good basis for wheat and corn harvests next summer.

Chicago Board of Trade (CBOT) most-active soybeans were up 0.1pc at $8.93-1/4 a bushel at 1109 GMT.

Corn fell 0.7pc to $3.70-1/2 a bushel and wheat dropped 0.9pc to $4.78-1/4 a bushel.

"Soybeans remain supported by the latest US export sales to China while the US crop conditions report on Monday and EU/Black Sea rainfall prospects drew a slightly improved picture of corn and wheat prospects which is weakening CBOT prices today," said Michael Magdovitz, senior agriculture commodities analyst at Rabobank.

Soybeans rose on Monday on news US exporters had made hefty sales of around 600,000 tonnes of soybeans to China along with rising concerns that rains in the US Midwest could lower crop quality just before harvest.

The weekly crop progress report from the US Department of Agriculture (USDA) after the market close on Monday said 57pc of US corn crops were in good-to-excellent condition, up from 55pc last week and market expectations also of 55pc.

"The USDA's assessment of the state of US corn was considerably better than market expectations and with a firm improvement on last week," Magdovitz said.

US crop conditions were better than expected, brokerage Allendale said in a note.

Traders remained optimistic a trade deal could still be done by the United States with China, Allendale added.

The USDA said 22pc of US winter wheat had been planted, up sharply from 8pc last week and above expectations of 18pc.

Some 87pc of US spring wheat was harvested, up from 76pc last week and above market expectations of 83pc.

"US spring wheat harvesting and winter wheat plantings accelerated slightly faster than market expectations," Magdovitz  said.

"A very good advance was achieved in winter wheat plantings which again illustrates the ability of farmers to make rapid field progress. The spring wheat harvest is not yet over, and weather risks remain, but progress is being made."

"Meanwhile widespread rain west Europe and even parts of the Black Sea region will be positive for winter wheat plantings and spring crop maturity, raising the question of whether larger supplies are on the horizon," Magdovitz said.