US soyabean futures dipped early on Wednesday on better-than-expected US crop ratings and concerns about sluggish export demand. Wheat futures also declined, while corn traded near unchanged. Soyabeans pulled back after rising on Tuesday on expectations that the US Agriculture Department would cut its condition ratings for the crop in a weekly report due to unfavorable weather. Instead, the agency kept its ratings for soyabeans and corn unchanged from the previous week.
Chicago Board of Trade November soyabeans fell 0.9 percent to $8.71-1/2 a bushel by 11:00 am (1600 GMT), after rising 1.5 percent on Tuesday. December corn was flat at $3.68-1/4 a bushel after rising 1.4 percent on Tuesday. December wheat lost 0.4 percent to $4.73 a bushel, having closed up 1.5 percent on Tuesday. The nearby contract touched a five-year low on Friday due to large global supplies and poor demand for US wheat.
Traders are waiting for the USDA on Friday to issue monthly reports updating its global estimates for crop supplies and demand and its US forecasts for the soyabean and corn harvests. Reports of lower-than-expected US corn yields helped boost grain prices on Tuesday. The USDA is expected to cut its US corn production estimate to 13.599 billion bushels, with an average yield of 167.6 bushels per acre, from its August estimate of 13.686 billion, with an average yield of 168.8 bushels, according to a Reuters poll of analysts. The agency will likely cut its soya production estimate to 3.869 billion bushels, with an average yield of 46.4 bushels per acre, from its August estimate of 3.916 billion, with an average yield of 46.9 bushels.