Glacier FarmMedia COVID-19 & the Farm

U.S. grains: Soy eases on improved weather view

Chicago corn mixed, wheat down

cbot july soybeans
CBOT July 2021 soybeans (candlesticks) with 20- and 100-day moving averages (green and black lines) and ICE November 2021 canola (yellow line, left column). (Barchart)

Chicago | Reuters — U.S. soybean futures fell on Tuesday on an improved weather outlook for the Midwest crop belt, analysts said.

The forecasts for cooler and wetter conditions later this month also pressured new-crop corn futures on the Chicago Board of Trade (CBOT), although front-month July gained against back months on spreads, reflecting tight supplies of old-crop U.S. corn.

CBOT July soybeans settled down 6-1/2 cents at $14.65-3/4 per bushel, with new-crop November soybeans down 21-3/4 cents at $13.73-1/2.

CBOT July corn ended up 8-1/4 cents at $6.67-1/2 a bushel, while new-crop December corn fell 7-1/2 cents to settle at $5.73-3/4.

CBOT wheat futures fell nearly two per cent on seasonal pressure from the start of the Northern Hemisphere harvest. CBOT July wheat finished down 13 cents at $6.61-1/2 per bushel.

Soybeans and deferred corn sagged as traders reacted to weather forecasts calling for beneficial rains and cooler temperatures next week.

“We are seeing follow-through selling from improving weather. Temperatures were a little bit cooler than was forecast the previous day,” said Terry Reilly, senior analyst with Futures International.

Expectations that the moisture would bolster crop prospects helped to overshadow a drop in weekly U.S. crop condition ratings.

The U.S. Department of Agriculture late Monday rated 68 per cent of the U.S. corn crop as good to excellent, down four points from the previous week, and 62 per cent of the soybean crop as good to excellent, down five points.

“Even though ratings were down, they are probably going to be better in a couple weeks because we are supposed to get rain,” said Jack Scoville, analyst with the Price Futures Group.

Additional pressure stemmed from a lower-than-expected monthly soy crush figure for May from the National Oilseed Processors Association.

NOPA said its members crushed 163.5 million bushels of soybeans in May, up from 160.3 million in April but below an average of analyst expectations for 165.1 million bushels.

CBOT wheat fell as the U.S. winter wheat harvest got rolling, although the harvest was only four per cent complete by Sunday, USDA said, lagging the five-year average of 15 per cent.

Egypt’s state grains buyer, the General Authority for Supply Commodities, canceled an international wheat purchasing tender. The agency did not provide a reason, but traders said high freight rates may have been a factor.

— Julie Ingwersen is a Reuters commodities correspondent in Chicago; additional reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore.

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