Soybeans, corn and wheat ease as crop supply weighs
Chicago soybean and corn futures dipped to near four-year lows as U.S. crop data signals strong harvests. Wheat also declined amid robust U.S. production and fierce export competition from the Black Sea region.
PARIS/CANBERRA, Aug 20 (Reuters) -Chicago soybean and corn futures edged lower on Tuesday, hovering near four-year lows as latest crop data underscored the prospect of large U.S. harvests this year.
Wheat also ticked down as a favourable U.S. production outlook coincided with stiff export competition from the Black Sea region.
Losses were limited, however, as traders waited for further findings from the Pro Farmer field tour in the U.S. Midwest that kicked off on Monday.
The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 was down 0.4% at $9.71-3/4 a bushel by 1133 GMT, while CBOT corn Cv1 fell 0.3% to $3.99-1/4 a bushel.
Corn and soybeans both hit their lowest in almost four years on Friday before steadying on Monday.
Weakness in the dollar, a dry spell forecast for the coming week in the central United States and news that exporters sold 332,000 metric tons of U.S. soybeans to China helped underpin prices in the previous session.
But overnight crop news highlighted strong supply prospects.
Scouts on the Pro Farmer tour estimated corn yield prospects in both Ohio and South Dakota were below last year’s findings but higher than the three-year average.
The U.S. Department of Agriculture (USDA), in a weekly report, rated 67% of U.S. corn and 68% of the soybean crop as being in good-to-excellent condition, matching analyst expectations and the highest for the time of year for both crops since 2020.
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.
“China is the key to finding the bottom in the markets at the moment,” he said. “Without China there is no bottom.”
Tepid demand from China has contributed to falling U.S. prices this year.
CBOT wheat Wv1 was down 0.3% at $5.50-1/2 a bushel.
The USDA rated 73% of the U.S. spring wheat crop in good-to-excellent condition, up one percentage point from the previous week and above analysts’ expectations.
In Russia, export prices declined last week, with analysts expecting harvest supplies to exert further downward pressure.
Rain-hit harvests in France and Germany, the European Union’s biggest wheat producers, have so far had little impact on international prices.
“This is because abundant crops in important export countries such as Russia, the U.S.and Canada do not give rise to fears of shortages, even if less wheat is likely to be harvested in the EU,” Commerzbank said.
| Prices at 1133 GMT | |||
| Last | Change | Pct Move | |
| CBOT wheat Wv1 | 550.50 | -1.75 | -0.32 |
| CBOT corn Cv1 | 399.25 | -1.00 | -0.25 |
| CBOT soy Sv1 | 971.75 | -4.25 | -0.44 |
| Paris wheat BL2U4 | 203.00 | 0.50 | 0.25 |
| Paris maize EMAc1 | 196.00 | 1.25 | 0.64 |
| Paris rapeseed COMc1 | 446.50 | -6.75 | -1.49 |
| WTI crude oil CLc1 | 74.42 | 0.05 | 0.07 |
| Euro/dlr EUR= | 1.11 | 0.00 | -0.06 |
| Most active contracts – Wheat, corn and soy UScents/bushel, Paris futures in euros per metric ton | |||
Source Link : https://www.xm.com/research/markets/allNews/reuters/soybeans-corn-and-wheat-ease-as-crop-supply-weighs-53908952
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