Chicago Board of Trade corn futures sank for the second day in row on Tuesday, dropping 4.1 percent to a three-month low as the US Agriculture Department's unexpected boost to its US production forecast continued to weigh heavily on the market, traders said. Soyabean futures made up most of the ground they lost on Monday on signs of easing tensions in the U.S-China trade fight as well as concerns about dry conditions hindering crop development in the Midwest.
The USDA surprised grain markets on Monday by raising its outlook for this year's US corn production as it reduced its estimate of rain-hit plantings by less than expected while increasing its harvest yield projection. The most actively traded soft red wheat futures contracts were narrowly mixed on Tuesday after finding technical support near Monday's low while K.C. hard red winter wheat and MGEX spring wheat issues staked out fresh contract lows, also due to bearish government production forecasts.
Chicago Board of Trade November soyabean futures ended up 9-3/4 cents at $8.89 a bushel, their fourth day of gains in five sessions. The Trump Administration will delay imposing a 10% tariff on certain Chinese products, including laptops and cellphones, that had been scheduled to start next month, the Office of the US Trade Representative said on Tuesday. Chinese Vice Premier Liu He had a telephone conversation with US trade officials, China's Ministry of Commerce said in a statement on Tuesday. Liu spoke with US Trade Representative Robert Lighthizer and US Treasury Secretary Steven Mnuchin.
CBOT December corn was 16-1/4 cents lower at $3.76-1/2 a bushel, closing just above its session low of $3.76 a bushel. That was the lowest traded price for the most-active contract since May 16. CBOT September soft red winter wheat futures were 1/4 cent higher at $4.72 a bushel.
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