Chicago soyabean prices fell on Tuesday, snuffing out a three-session rally as an accelerating US harvest shifted attention back toward the prospect of record production. Corn edged higher, supported by short-covering in spread trades against soyabeans, while wheat finished flat, held in check by technical selling and ample US supplies.
Chicago Board of Trade's most-active November soyabean contract fell 1.1 percent, or 9-1/2 cents, to $9.63-1/2 a bushel, after prices on Monday hit their highest point since September 23. The US soyabean harvest was 26 percent complete as of Sunday, ahead of the trade estimates' average of 25 percent but behind the five-year average of 27 percent, the US Department of Agriculture (USDA) said after the market closed on Monday.
USDA also said 74 percent of US soyabeans were in good or excellent shape, up one percentage point from a week ago. "When you see the crop condition rating going up really late in the season, it signifies that yields are coming in better than expected," said Bill Nelson, soyabean and products analyst at Doane Advisory Services.
Soyabeans faced further pressure from favourable overnight rains in northern Brazil, where planting is underway, Nelson said. Also after Monday trading, brokerage INTL FCStone raised its estimate of the average US 2016 soyabean yield to a record 52.5 bushels per acre (bpa), from 50.1 in its previous monthly report. US soyabean export prospects were boosted by news that Argentina will not reduce export taxes this year or next as previously promised.
Most active December corn added 2-1/4 cents or 0.6 percent to $3.48-1/4 a bushel after earlier reaching a nearly 11-week high of $3.49. USDA said the US corn harvest was 24 percent complete by Sunday, behind the trade estimates' average of 25 percent and the five-year average of 27 percent. It said the US winter wheat crop was 43 percent planted, behind the five-year average of 45 percent and analysts' average expectation of 47 percent.
INTL FCStone trimmed its corn yield forecast marginally to 175.2 bushels per acre from its September figure of 175.6 bushels. Chicago most active December wheat finished flat at $3.95-1/2 a bushel. Wheat traders awaited the outcome of a tender by the government buyer in Egypt, which drew nine offers.
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