US soyabean futures dipped 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 unfavourable weather. Instead, the agency kept its ratings for soyabeans and corn unchanged from the previous week.
"The biggest problem you've got going on right now is everybody was looking for lower ratings and they didn't happen," said Jim Gerlach, president of A/C Trading in Indiana. Chicago Board of Trade November soyabeans fell 7 cents, or 0.8 percent, to $8.72-1/4 a bushel, after rising 1.5 percent on Tuesday. December corn gained 3/4 cent, or 0.2 percent, to $3.69 a bushel after rising 1.4 percent on Tuesday.
December wheat lost 2-3/4 cents, or 0.6 percent, to $4.72-1/4 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. Farmers and traders are waiting for the USDA on Friday to issue monthly reports updating its forecasts for the US harvests. Market activity will likely be choppy until the data are released, analysts said. The "trade appears mindful of disappointing yield reports thus far" in the Corn Belt, said Rich Feltes, head of Market Insights for broker RJ O'Brien. Still, traders are "cautious in applying early results belt-wide" because the harvest is not actively underway in the Midwest yet, he added.
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. Export demand for US soyabeans has been sluggish due to competition for business from South America.