PARIS/SINGAPORE: Chicago corn, wheat and soybean futures fell on Tuesday as weekly US crop data underscored good harvest prospects while grain prices were also curbed by a stronger dollar as financial markets recovered from the previous day’s slide.
The most active soybean contract on the Chicago Board of Trade (CBOT) was down 1.7% at $10.23-1/2 a bushel by 1137 GMT, halting a two-session bounce.
CBOT corn fell 0.7% to $4.04 a bushel and CBOT wheat eased by 0.6% to $5.36-1/2 a bushel.
All three remain near their lowest in almost four years.
Grains mostly held up during the selloff in other markets on Monday as funds covered already large short positions in grains while an export-friendly drop in the dollar also lent support, traders said.
Chicago soybeans, corn edge down on ample US supplies, China demand worries
“Price pressure is coming from yesterday’s publication by the US Department of Agriculture on the current crop status,” Commerzbank said in a note. “Prices are thus still within striking distance of the multi-year lows recorded last week.”
The USDA’s weekly crop report released after Monday’s market close shifted attention back towards favourable production prospects.
The report showed the rating for the US soybean crop had improved unexpectedly while corn conditions fell slightly, in line with market estimates. The scores for both crops remained at their highest for the time of year since 2020.
The data suggested a limited impact so far from dry, hot spells in US crop belts and moderate heat forecast in the week ahead was tempering concern about low moisture in some areas.
Coupled with large harvests in Brazil, good US growing conditions have improved the supply outlook for corn and soybeans, though drought gripping Ukraine and the rest of the Black Sea zone could dent another major source of corn.
The USDA crop report also confirmed good US wheat conditions. Along with a large harvest in Russia, that has taken the focus away from a poor crop in France.
In Argentina, rains fell over the weekend in much of the central agricultural zone, offering relief for wheat crops after a very dry July.