Wheat, corn recover after slide; soy hits 2020 low
CHICAGO, July 9 (Reuters) – Chicago wheat and corn futures rebounded slightly on Tuesday following sharp declines the previous day. Soybean futures, however, closed at their lowest in nearly four years amid expectations of ample northern hemisphere harvests. Rains from Hurricane Beryl are set to benefit the U.S. Midwest, while robust U.S. crop ratings continue to pressure corn and soy prices. Wheat futures gained support from strong export sales and concerns over European yields, though Russian conditions improved. Traders await Friday’s USDA supply and demand forecasts.
CHICAGO, July 9 (Reuters) – Chicago wheat and corn futures ticked higher on Tuesday after sharp declines on Monday, while most-active soybean futures closed at their lowest point in nearly four years, as expectations of ample supplies from northern hemisphere harvests hung over the market.
Rains from Hurricane Beryl are expected to provide beneficial moisture across the U.S. Midwest, while strong ratings of the U.S. corn and soy crop have continued to exert downward pressure on corn and soy futures, traders said.
Despite the bearish news supporting big U.S. crops, CBOT corn ended up 3/4 cent at $4.08-1/2 a bushel on a technical bounce after approaching a four-year low on Monday.
“We overdid it yesterday,” Jack Scoville, analyst at Price Futures Group, said. “We’ve taken corn as cheap as it’s going to go.”
Though corn prices have recovered, soy futures continue facing challenges from a lack of demand, weak crush margins and a global oversupply, traders said.
CBOT soybeans settled down 19-1/2 cents at $10.80 a bushel, hitting its lowest point since November 3, 2020. August soybean futures hit a life-of-contract low, settling at $11.31-1/4 per bushel.
The most-active wheat contract on the Chicago Board of Trade (CBOT) closed up 1-1/2 cents at $5.72 a bushel.
Wheat futures have benefited from strong export sales, lingering concerns over yield from the European wheat crop and worries that rains from Hurricane Beryl may slow the wheat harvest in the U.S. Plains.
However, supply pressure has also come from improving conditions for wheat in top exporter Russia, taking attention away from rain-affected prospects in France where the farm ministry said on Tuesday it expects the main wheat crop to shrink by 15% from last year.
The U.S. Department of Agriculture (USDA) increased its ratings of corn, soy and spring wheat crops while estimating that nearly two-thirds of winter wheat had been harvested in Monday’s crop progress report.
Traders are also turning attention to Friday’s USDA monthly supply and demand forecasts.
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