Chicago Board of Trade soyabean futures rose as much as 2.5 percent on Tuesday, supported by the US Department of Agriculture's cut to crop ratings and its report showing planting has fallen behind the typical pace, traders said. Corn futures rose too, firming on bargain buying after posting a sharp decline on Monday. The gains in corn, which also received support from declining crop ratings, pulled it from contract lows.
"The low held overnight thanks to lowered crop ratings," Matt Zeller, director of market information at INTL FCStone, said in a note to clients. "The bears may have a tough time taking it much further in the next two weeks." The USDA will release its closely watched reports on corn and soyabean plantings as well as quarterly stocks at the end of June. CBOT July soyabean futures settled up 19-3/4 cents at $9.57-1/2 a bushel.
New-crop soyabean contracts notched the biggest gains due to the concerns about crop development and the seeding delays leading to cuts in acreage. CBOT November soyabeans rose 23-1/4 cents to $9.27-1/2 a bushel, its highest settlement since May 18. The USDA said on Monday afternoon the soyabean crop was rated 67 percent good to excellent, down from 69 percent last week following rains in the US Midwest and southern Plains.
Overall, 87 percent of the soya crop was planted, up from 79 percent the week before but still behind the five-year average of 90 percent by mid-June. CBOT July corn, which had fallen for five sessions in a row, ended up 5-3/4 cents at $3.54 a bushel. The USDA lowered its good-to-excellent rating for the US corn crop by 1 percentage point to 73 percent. CBOT July wheat dropped 1/2 cent to $4.88-3/4 a bushel. Traders said that the forecast for drier weather, which will allow farmers in the US Plains to harvest the winter wheat crop, weighed on prices.
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