Glacier FarmMedia COVID-19 & the Farm

U.S. grains: Soybeans, corn fall on planting pace

Traders note positioning ahead of monthly crop report

(Scott Bauer photo courtesy ARS/USDA)

Washington | Reuters — U.S. corn and soybean futures fell on Monday, pressured by expectations that a government report will show the pace of planting of both commodities was well ahead of the typical schedule.

Wheat futures were mixed, with hard red winter wheat contracts supported by concerns about the crop in the U.S. Plains following a tour of key production areas last week. Soft red winter wheat and spring wheat futures closed lower.

Traders also noted positioning ahead of the U.S. government’s monthly supply and demand report on Tuesday, where it will give its first outlook for corn, soy and wheat stocks for the 2015-16 crop year.

Bearish outside markets and concerns about cuts to demand from domestic livestock producers contributed to the bearish tone.

“The dollar and the avian flu are keeping the demand bulls out of the market,” said Mike Zuzolo, an analyst with Global Commodities Analytics.

Chicago Board of Trade soybeans for July delivery settled down 2-1/4 cents at $9.74 a bushel (all figures US$). CBOT July corn was 2-1/2 cents lower, at $3.60-1/2 a bushel.

Analysts polled by Reuters on average expect the U.S. Department of Agriculture to report that corn planting was 73 per cent complete as of Sunday, compared to the five-year average of 58 per cent. The report is due at 4 p.m. ET.

Soybean planting was expected to come in at 28 per cent compared with the five-year average of 13 per cent.

CBOT July soft red winter wheat was down 1/2 cent at $4.81 a bushel. K.C. July hard red winter wheat was up 1/4 cent at $5.08-3/4 a bushel while MGEX spring wheat for July delivery was 4-1/4 cents lower at $5.36-3/4 a bushel.

“When it comes to the findings of the tour of experts through Kansas, the most important U.S. wheat growing state, observers are unable to agree on whether the glass is half full or half empty,” Commerzbank said, noting that experts pegged the 2015 yield higher than in the previous year, but below the average figure for the past five years.

Mark Weinraub is a Reuters correspondent covering grain markets from Chicago. Additional reporting for Reuters by Michael Hirtzer in Chicago, Naveen Thukral in Singapore and Sybille de La Hamaide in Paris.

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