US corn futures fell 1.9 percent on Tuesday while soyabean futures rose as the market tried to entice farmers to boost soyabean plantings amid expectations for massive corn acreage across the Midwest this spring, traders said. Wheat futures also dropped, shedding 1.7 percent, on technical selling and profit taking following a rally last week. Forecasts for improved soil moisture in key growing areas of the United States also contributed to the weakness.
But market watchers were mostly focused on the fight between corn and soyabeans ahead of the US Agriculture Department's annual outlook conference this week, an eclectic gathering of analysts, captains of industry, farmers, investors, academics and many others.
"They are trying to buy acres for soyabeans," said J. Mark Kinoff, president of Ceres Hedge. "I expect corn ... to suffer at the hands of beans. Everyone is going to plant corn. What we are fearful of at the moment is that we are not going to have enough beans."
USDA will update its crop forecasts at the gathering on February 23 and 24 and the data is likely to confirm that farmers will plant 94 million acres (38 million hectares) with corn and 74 million acres with soyabeans. "It looks like there is a possibility of increasing carryout (for corn) if we get normal yields, unlike the beans that are probably looking at a declining carryout situation," said Jason Britt, analyst with Central States Commodities.
Chicago Board of Trade March corn futures settled down 12-1/4 cents at $6.29-1/2 a bushel. Corn prices fell through their 30-day and 100-day moving averages before finding support near their 50-day moving average. "Everyone is blaming it on the outlook conference this week," said Mary Ann Kwiatkowski, analyst for Amber Trading. March soyabean futures ended up 3-1/2 cents at $12.71 a bushel. A rally in the crude oil market added further support to soyabeans.
March soft red winter wheat dropped 11 cents to $6.33 a bushel, closing below its 30-day and 100-day moving averages during the session. Prices traded below the 50-day moving average during the session but closed above that key technical support level.
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