US soy slips as traders await China deals; corn, wheat rise

• "Some of the market is getting a little disappointed that we are not seeing more purchases," said Dan O'Bryan.
• Corn futures rose on short-covering and technical buying. Wheat futures were firmer on deteriorating crop conditions in the United States.
•  CBOT July corn futures were 4-1/2 cents higher at $3.25-1/4 bushel and CBOT July soybeans were 5-1/4 cents lower at $8.39-3/4 a bushel.

CHICAGO: Chicago Board of Trade soybean futures fell on Tuesday for the fourth session in five, pressured by a fast pace of planting and slowing export deals to China after a string of sales earlier in the month, traders said.

"Some of the market is getting a little disappointed that we are not seeing more purchases," said Dan O'Bryan, risk management specialist and broker at Top Third Ag Marketing.

Corn futures rose on short-covering and technical buying. Wheat futures were firmer on deteriorating crop conditions in the United States.

At 10:21 a.m. CDT (1521 GMT), CBOT July soft red winter wheat was up 3 cents at $5.00 a bushel.

The US Agriculture Department on Monday said the winter wheat crop was rated 52% good to excellent as of May 17, down 1 percentage point from a week earlier.

Wheat futures also benefited from bargain buying after the most-active contract sank to a two-month low on Monday.

CBOT July corn futures were 4-1/2 cents higher at $3.25-1/4 bushel and CBOT July soybeans were 5-1/4 cents lower at $8.39-3/4 a bushel.

Corn futures hit their highest since April 24 after the July contract broke through its 30-day moving average, a technical point the contract had not eclipsed since Jan. 24.

US farmers have planted 80% of their intended corn acreage and 53% of their soybean crop, USDA said. Planting of both crops was well ahead of the typical pace but behind market forecasts.

Gains in the crude oil market added to the corn strength in hopes that ethanol demand will increase as drivers return to the roads.

"More areas are starting to emerge from coronavirus lockdowns, which may stimulate more demand for corn-based ethanol fuel," said Matt Ammermann, commodity risk manager at INTL FCStone.