- Soybeans, corn fall as USDA rates crops in healthy condition
- Strong soybean demand limits price decline, wheat extends losses
SINGAPORE, Aug 23 (Reuters) – Chicago soybean futures lost ground on Tuesday, while corn slid for a second session, with renewed pressure on prices after a U.S. government report showed both crops thriving in near-perfect weather.
Wheat fell, adding to Monday’s more than 2 percent decline, as abundant global supplies continue to weigh on the market.
Chicago Board of Trade most-active corn contract Cv1 fell 0.5 percent to $3.40-3/4 a bushel by 0301 GMT, having closed down by about a similar amount in the previous session.
Soybeans Sv1 dipped 0.3 percent to $10.13 a bushel and wheat Wv1 gave up 0.7 percent to $4.32-1/4 a bushel.
“Growing conditions for beans are fantastic across the U.S. Midwest,” said one agricultural commodities analyst.
“The U.S. crop has been estimated to be a record large and it is likely to get bigger as the weather outlook for next week or two looks perfect.”
The U.S. Department of Agriculture (USDA) rated 75 percent of the U.S. corn crop in good-to-excellent condition, up from 74 percent the previous week, while soybean ratings held steady at 72 percent rated good-to-excellent. US/CROPS
Analysts had expected the USDA to report a decline in the condition of the corn crop, with soybeans seen as unchanged. At this time of last year, 69 percent of corn and 63 percent of soybeans were rated good-to-excellent.
Still, strong demand is underpinning the soybean market.
The USDA said private exporters sold 120,000 tonnes of soybeans to unknown destinations for 2016-17 delivery.
The agency also reported export inspections of U.S. soybeans in the latest week at 961,414 tonnes, above a range of trade expectations of 650,000 to 850,000 tonnes.
The European Union’s crop monitoring service significantly cut its forecast on Monday for average maize and soft wheat yields in this year’s EU harvest after adverse weather.
However, Russia is seen more than offseting the weather-related crop shortfalls in Europe.
Commodity funds were net sellers of CBOT corn and wheat futures on Monday and net buyers in soybeans and soymeal, traders said.
Trader estimates of net fund selling in corn ranged from 3,000 to 6,000 contracts, and in wheat from 3,000 to 8,000 contracts. For soybeans, trader estimates of net fund buying ranged from 3,000 to 7,000 contracts.
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