Chicago soybean futures rose on Wednesday, recouping the last session’s losses, after a weekly U.S. government report showed that crop conditions had deteriorated more than expected during a hot, dry spell.
Corn edged higher after the U.S. Department of Agriculture (USDA) also cut its corn crop rating by more than anticipated.
Wheat rose for a second session, recovering further from a three-month low as dry weather in leading exporters Australia, Argentina and Canada lent support.
The most-active Chicago Board of Trade (CBOT) soybean contract Sv1 was up 0.9% at $13.77-3/4 a bushel at 1044 GMT, after slipping to its lowest in over a week on Tuesday.
CBOT corn Cv1 added 0.5% to $4.88-1/2 a bushel.
In its crop progress report published after Tuesday’s market close, the USDA rated 53% of the U.S. soybean crop as good to excellent, down 5 percentage points from a week ago and below the 55% expected on average by analysts.
The USDA rated 53% of the U.S. corn crop as good to excellent, down 3% from last week and beneath analysts’ expectations of 54%.
The good-to-excellent ratings for both crops are the lowest for this time of year since 2012, a historic drought year.
“These two products will be mainly driven today by the publication last night of the USDA’s new crop ratings,” consultancy Agritel said.
A hot, dry end to the summer has raised concerns about stress to soybean and corn plants. Attention is shifting toward the USDA’s monthly supply and demand forecasts on Sept. 12 for an update on harvest prospects.
“U.S. soybean and corn crops are getting ready for harvest and we are seeing some more damage due to hot and dry weather,” said one Singapore-based trader.
There was additional support for soybeans stemming from the USDA data showing that exporters sold 251,000 metric tons of U.S. beans to unknown destinations.
CBOT wheat Wv1 was up 1% at $6.05-1/4 a bushel.
A reduced official forecast this week for Australia’s wheat harvest put the focus on dry conditions linked to the El Nino weather pattern.
Australia’s weather bureau said on Wednesday that areas of severe rainfall deficiency had expanded in August.
Wheat prices remained capped by Black Sea export competition, traders said.
Russian consultancy Sovecon raised its forecast for Russian exports to 48.6 million metric tons in the 2023/24 season from 48.1 million previously.
Continuing shipments of Ukrainian grain were also tempering supply concerns, despite the collapse of a Black Sea grain deal and repeated Russian attacks on Ukrainian grain terminals, including early on Wednesday.
Source: Hellenic Shipping News
