US soyabean futures retreated on Tuesday as the market braced for an anticipated increase in the government's 2018 harvest forecast and amid concerns of a prolonged trade war with China, the world's top soyabean importer. Corn futures followed soyabeans lower, easing for a second straight session as traders positioned for the US Agriculture Department's (USDA) supply-and-demand report for October due on Thursday.
Concerns about a rain-delayed corn and soya harvest in the western Midwest limited price declines. Wheat futures edged higher on signs of improving US export demand, although prices remain capped by big global supplies and stiff export competition. Analysts polled ahead of Thursday's report, on average, expect the USDA to increase its US corn and soyabean yield and production forecasts as well as raise its US and world grain and soyabean stocks projections.
Chicago Board of Trade (CBOT) November soyabeans fell 5-3/4 cents to $8.64 a bushel by 11:37 a.m. CDT (1637 GMT), while December corn dipped 2 cents to $3.64-1/2 a bushel. CBOT December wheat rose 1-1/4 cents to $5.15-1/4 per bushel, rebounding from overnight declines after the USDA announced a large hard red winter wheat export sale to Bangladesh.
Rains in parts of the western Midwest provided underlying support to the market, however, along with a rising currency in soya export rival Brazil after a strong first-round electoral showing by far-right presidential candidate Jair Bolsonaro.
The USDA's weekly harvest progress and crop condition report, scheduled for release after Tuesday's market close, is expected to show that corn and soyabean harvesting remains ahead of normal, although the pace is expected to slow with this week's rains.