Corn and soybeans face headwinds from hope of fast US harvest progress

HAMBURG: Chicago corn and soybeans were pressured on Monday on expectations that favourable weather will enable good progress with US harvesting, although soy falls were limited by strong Chinese purchases of US soybeans.

Wheat was underpinned as continued fighting meant Russian and Ukrainian Black Sea exports were unlikely to resume quickly.

Chicago Board of Trade most active corn fell 0.4 percent to USD4.72-1/4 a bushel at 1147 GMT, remaining around its lowest in about two months. Soybeans were unchanged at USD12.61-1/4 a bushel. Wheat was unchanged at USD6.60-1/4 a bushel, after hitting two-month lows on Friday.

Recent dry weather across the US Midwest has enabled farmers to speed up harvesting of soybeans and corn.

Generally dry weather is again forecast in the Midwest this week, with the Department of Agriculture set to give a new US harvest update later on Monday.

“US soybean and corn harvesting appears to have made rapid progress in the past week and favourable weather should permit fast progress this week, factors putting downward pressure on both corn and soybeans,” said Matt Ammermann, commodity risk manager at StoneX.

“Soybeans are supported by hopes of more US sales to China following the big sales reported last week, although it must be stressed the China purchases were in the range of expectations and Brazilian soybeans are currently cheaper.”

Corn has been pressured since USDA raised its US corn harvest estimate earlier in October.

“Wheat is seeing support from continued heavy drone and missile attacks by Ukraine and Russia with no peace deal in sight which could allow Ukraine and Russia to resume ship-borne Black Sea wheat exports.”

“But gains are limited by strong market focus on Russia’s development of high-volume non-traditional wheat export routes, especially via the Baltic Sea.