CANBERRA: Chicago soybean and corn futures edged lower on Tuesday, hovering near four-year lows as traders waited to see if a widely followed crop tour this week will support expectations of bumper US production.
Wheat futures also slipped as large Black Sea crops and an improvement in the condition of US wheat maintained expectations of ample supply despite poor French and German harvests.
The most-active soybean contract on the Chicago Board of Trade (CBOT) was down 0.2% at $9.74 a bushel at 0440 GMT, while CBOT corn fell 0.1% to $3.99-3/4 a bushel and wheat dipped 0.2% to $5.51 a bushel.
All three contracts have slipped to their lowest levels since 2020 in recent weeks - $9.55 for soybeans, $3.90 for corn and $5.14 for wheat. Soy and corn are likely to fall further as the United States gears up for harvest in the coming weeks, said Ole Houe at IKON Commodities in Sydney.
“There’s a lot to sell in a short space of time,” he said, adding that much would depend on whether China, whose economy and demand for US soy have been lacklustre, will buy US corn and soy in bulk.
“China is the key to finding the bottom in the markets at the moment,” he said. “Without China there is no bottom.”
The Pro Farmer crop tour in the US Midwest kicked off on Monday, with scouts saying corn yield prospects in both Ohio and South Dakota were below last year’s findings but higher than the three-year average.
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The US Department of Agriculture (USDA) rated 67% of the nation’s corn crop and 68% of the soybean crop in good-to-excellent condition, matching analyst expectations and the highest for this time of year for both crops since 2020.
The USDA also reported private sales of 332,000 metric tons of US soybeans to China and 110,000 tons to undisclosed destinations for shipment in the 2024/25 marketing year.
In wheat, the USDA rated 73% of the US spring crop in good-to-excellent condition, up 1% from the previous week and above analysts’ expectations.
Russian wheat export prices declined last week amid lower global prices and weak demand, with analysts expecting new crop supplies to increase and exert further downward pressure.
Egypt remains confident of securing its target of around 3.8 million metric tons of imported wheat by the end of 2024 through a combination of tenders, direct purchases and government-to-government agreements, a minister said.