U.S. grains: Soy, spring wheat extend losses on technicals, weather

soybean harvest
(Photo courtesy United Soybean Board)

Chicago | Reuters — U.S. soybean and spring wheat futures pared losses on Monday but still closed lower as technical selling and outlooks for favourable crop weather continued to pressure prices following steep declines last week.

Meanwhile, Chicago Board of Trade wheat and corn futures turned higher on a bargain-buying bounce.

CBOT November soybean futures settled 6-3/4 cents lower at $9.38-1/4 per bushel, above their nearly two-month low of $9.30-3/4 (all figures US$). Corn for December delivery fell to $3.56 per bushel — a more than 10-month low – before finishing up 1-1/2 cents at $3.76-1/4.

MGEX September wheat futures were down four cents to $6.70 per bushel after falling as low as $6.38-1/4. CBOT September wheat was up 1-3/4 cents to $4.41.

“We’ll probably stabilize until we hear more about the crops,” said Jack Scoville, broker at the Price Futures Group.

Soybeans, wheat and corn had all tumbled to the lowest levels in a month or more on Thursday when the U.S. Department of Agriculture showed bigger-than-expected U.S. corn and soybean yield estimates and a smaller-than-expected cut in the spring wheat crop.

Rainfall this week should benefit crops. About 70 per cent of U.S. corn- and soybean-growing areas should receive rains in the next five days, according to the Commodity Weather Group.

USDA after the close of trading said 59 per cent of the U.S. soybean crop was rated good to excellent, down one percentage point. The corn crop was rated 62 per cent good to excellent, up two percentage points. Analysts surveyed by Reuters expected steady ratings for both.

Analysts expected the National Oilseed Processors Association on Tuesday to show a year-on-year decline in the U.S. soybean crush in July.

— Michael Hirtzer reports on commodity markets for Reuters from Chicago. Additional reporting for Reuters by Naveen Thukral in Singapore and Gus Trompiz in Paris.

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