PARIS/SINGAPORE: Chicago soybean futures eased on Tuesday as weather forecasts suggested dry crop belts will get some rain relief in the coming days.
Corn similarly ticked down, with a steadying in crude oil after Monday’s rally on Red Sea security risks helping curb grain prices.
Chicago wheat also edged lower, with offers in an import tender being held by Egypt highlighting large supplies of competitively priced Russian wheat.
The most active soybean contract on the Chicago Board of Trade (CBOT) was down 0.6% at $13.18-3/4 a bushel by 1234 GMT.
The contract earlier touched a one-week high, extending gains from Monday when rising crude oil prices and news that Argentina’s government plans to raise export taxes on soymeal and soyoil had boosted Chicago futures.
But forecasts showing chances of more showers in dry parts of central and northern Brazil in the week ahead acted as a brake on prices.
“The expected arrival of further beneficial rain is weighing on soybean prices in Chicago,” consultancy Agritel said.
“However, the uncertainty in the field remains sufficient to maintain the psychological level of $13/bu for the near term.”
Widespread rain in Argentina has also improved crop conditions after drought, though the government’s announcement of a rise in export taxes for soymeal and soyoil has created uncertainty about export prospects.
Chicago soybeans have been underpinned by a recent run of US export sales to China, though there have yet to be further deals confirmed this week.
CBOT wheat was down 0.3% at $6.15 a bushel and corn edged 0.2% lower to $4.76-1/4 a bushel.
After a flurry of Chinese demand helped wheat rally earlier this month, persisting competition from Black Sea origins has capped prices in the past week.
Russian wheat was offered cheapest before shipping costs in Tuesday’s Egyptian tender.
Rising grain volumes shipped by sea from war-torn Ukraine have also contributed to supply pressure in wheat.
Ukraine Deputy Prime Minister Oleksandr Kubrakov on Tuesday said that 10 million metric tons of products have been exported to 24 countries through the Black Sea corridor.