AIRLINK 204.45 Increased By ▲ 3.55 (1.77%)
BOP 10.09 Decreased By ▼ -0.06 (-0.59%)
CNERGY 6.91 Increased By ▲ 0.03 (0.44%)
FCCL 34.83 Increased By ▲ 0.74 (2.17%)
FFL 17.21 Increased By ▲ 0.23 (1.35%)
FLYNG 24.52 Increased By ▲ 0.48 (2%)
HUBC 137.40 Increased By ▲ 5.70 (4.33%)
HUMNL 13.82 Increased By ▲ 0.06 (0.44%)
KEL 4.91 Increased By ▲ 0.10 (2.08%)
KOSM 6.70 No Change ▼ 0.00 (0%)
MLCF 44.31 Increased By ▲ 0.98 (2.26%)
OGDC 221.91 Increased By ▲ 3.16 (1.44%)
PACE 7.09 Increased By ▲ 0.11 (1.58%)
PAEL 42.97 Increased By ▲ 1.43 (3.44%)
PIAHCLA 17.08 Increased By ▲ 0.01 (0.06%)
PIBTL 8.59 Decreased By ▼ -0.06 (-0.69%)
POWER 9.02 Decreased By ▼ -0.09 (-0.99%)
PPL 190.60 Increased By ▲ 3.48 (1.86%)
PRL 43.04 Increased By ▲ 0.98 (2.33%)
PTC 25.04 Increased By ▲ 0.05 (0.2%)
SEARL 106.41 Increased By ▲ 6.11 (6.09%)
SILK 1.02 Increased By ▲ 0.01 (0.99%)
SSGC 42.91 Increased By ▲ 0.58 (1.37%)
SYM 18.31 Increased By ▲ 0.33 (1.84%)
TELE 9.14 Increased By ▲ 0.03 (0.33%)
TPLP 13.11 Increased By ▲ 0.18 (1.39%)
TRG 68.13 Decreased By ▼ -0.22 (-0.32%)
WAVESAPP 10.24 Decreased By ▼ -0.05 (-0.49%)
WTL 1.87 Increased By ▲ 0.01 (0.54%)
YOUW 4.09 Decreased By ▼ -0.04 (-0.97%)
BR100 12,137 Increased By 188.4 (1.58%)
BR30 37,146 Increased By 778.3 (2.14%)
KSE100 115,272 Increased By 1435.3 (1.26%)
KSE30 36,311 Increased By 549.3 (1.54%)
Markets

Corn, soy firm as crop conditions in focus; wheat falls

  • US corn ratings drop to 62% good-excellent, soy down to 57%
  • Market awaits Midwest crop tour results, eyes demand rationing
  • Wheat slides after last week's surge on harvest setbacks
Published August 17, 2021

PARIS/SINGAPORE: Chicago corn and soybeans edged higher on Tuesday as lower-than-expected US crop ratings underscored mixed growing conditions, while the market awaited results from a Midwest field tour.

Gains were capped by signs of slower demand in some markets as consumers adjust to elevated prices and falling inventories.

US and European wheat dropped as investors booked profits after 8-1/2 year highs last week linked to declining northern hemisphere harvest prospects.

The most-active corn contract on the Chicago Board of Trade was up a quarter of a cent at $5.69 a bushel by 1035 GMT, while CBOT soybeans were up 0.3% at $13.72 a bushel.

In a weekly report after Monday's market close, the US Department of Agriculture (USDA) rated 62% of US corn crop good to excellent, down 2 points from a week earlier, and soybeans 57% good to excellent, down 3 points. Traders on average had expected no change.

Soybeans up 5-20 cents, wheat up 1-3 cents, corn down 3-4 cents

The lower ratings tempered hopes for a boost to crops from rainfall forecast in the coming days.

"The market is considering downside but not any upside to yields," said Michael Magdovitz, commodity analyst with Rabobank. "The rains have come too little, too late."

Initial results from this week's Pro Farmer Midwest Crop Tour projected lower corn yields and soybean pod counts than last year in South Dakota but higher levels in Ohio, supporting expectations of contrasting yields between western and eastern growing belts.

Soybeans have also been supported by a run of sales to China.

However, monthly US soybean crushing in July, according to National Oilseed Processors Association (NOPA) data released on Monday, was below trade estimates.

"Consumers are having to make pricing decisions at 50%-60% higher than last year. We're starting to see some demand rationing," Magdovitz said.

The most-active wheat contract on the Chicago Board of Trade (CBOT) was down 1.4% at $7.49-3/4 a bushel as it pulled away from Friday's 8-1/2 year peak of $7.74-3/4.

Wheat markets had surged after the USDA made steep cuts to world supply projections in a monthly outlook on Thursday, before edging down on Monday.

"The consolidation process is there and we're waiting to see what the next level is," Magdovitz said of wheat prices.

Russia's declining output and higher prices have caught short international trading companies that sold wheat to Asian millers, traders told Reuters.

Comments

Comments are closed.