US soybean futures fell more than 1 percent on Tuesday, pressured by stable crop conditions and forecasts for rain in the US Midwest at a key point in the crop's development. Corn firmed as a weekly US Department of Agriculture report showed a slight decline in the crop's condition, while wheat futures declined on weak demand and plentiful global supplies.
Overall, price movements were restrained as grain markets awaited more indications on corn and soybean yields from this week's Pro Farmer Midwest crop tour that started on Monday. Chicago Board of Trade November soybeans fell 13-3/4 cents, or 1.5 percent, to $9.03-1/4 a bushel by 10:50 am CDT (1550 GMT) after earlier coming within a penny of a two-month low.
Overall ratings for US soybean crops were unchanged on the week with 63 percent considered good or excellent, the USDA said on Monday. Weather forecasts for the United States are predicting widespread rain in the coming week, which should help soy crops in dry parts of the Midwest.
Market sentiment was also dented by a sharp drop in Chinese share prices, stoking concerns about a slowing economy in the world's top commodities importer and No 1 soy buyer. CBOT December corn rose 2-1/2 cents, or 0.7 percent, to $3.77 a bushel, drawing support from a fall in the USDA's good-to-excellent crop rating to 69 percent, down one point from the previous week.
Long corn/short soybean spreading added support. Crop scouts on the first day of the Pro Farmer Midwest crop tour found below-average yield potential in Ohio on Monday and strong prospects in South Dakota. The four-day tour will release its findings for Indiana and Nebraska on Tuesday. Early field reports indicate surprisingly strong corn and soybean yield potential in central and north-central Indiana. CBOT September soft red winter wheat fell 4-3/4 cents, or 1 percent, to $4.95-3/4 a bushel. September hard red winter wheat shed 6-1/4 cents, or 1.3 percent, to $4.76 a bushel.
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