US MIDDAY: soya and corn fall

02 Nov, 2016

Chicago Board of Trade soyabean and corn futures fell on Tuesday on expectations that the US Department of Agriculture might raise its forecast of the US soyabean yield in a monthly report next week, traders said. Wheat followed the weak trend, with global grain supplies adding pressure. As of 12:52 pm CDT (1752 GMT), CBOT January soyabeans were down 18-1/2 cents at $9.93-1/4 per bushel. December corn was down 6 cents at $3.48-3/4 a bushel and December wheat was down 4-1/4 cents at $4.12 a bushel.
Soyabeans sagged as traders began positioning for the USDA's November 9 supply/demand reports, which will include updated forecasts of US corn and soyabean crops, which are already projected as the largest on record. Commodity brokerage INTL FCStone is expected to release updated US crop estimates later on Tuesday that could foreshadow changes to the USDA's figures.
CBOT corn and soyabeans also felt pressure from fund selling at the start of the month and generally benign weather for South America, where planting is under way. The USDA said the US soyabean harvest was 87 percent complete by Sunday, ahead of the five-year average of 85 percent, and the corn harvest was 75 percent complete, in line with the five-year average. Wheat futures fell on ample supplies and lackluster export demand. But the market had underlying support from the fact that commodity funds already hold a large net short position in CBOT wheat, leaving it vulnerable to bouts of short-covering.

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