PARIS/SINGAPORE, July 26 (Reuters) – Chicago soybeans ticked higher on Tuesday, supported by an easing dollar, but held close to an earlier three-month low as a U.S. government report confirmed favourable crop conditions.
Corn inched down, with the market also capped by the U.S. Department of agriculture’s weekly crop report late on Monday that showed corn and soybean
ratings held steady last week despite hot weather.
Chicago wheat fell to break a three-day rally, pressured by a pullback in European wheat futures after a surge last week on deteriorating harvest prospects in France.
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U.S. grains: Soybean futures set two-week high on US weather worry, soyoil rally
Chicago Board of Trade soybean futures touched a two-week high on Friday on worries that heat may threaten U.S. crops and expectations that the country’s biofuel policy would boost demand for soyoil, analysts said.
Chicago Board Of Trade most-active soybeans gained 0.6 percent to $9.71-3/4 a bushel by 1135 GMT, having lost 4.6 percent in the last two sessions.
Earlier in the day, it dropped to $9.63 a bushel, matching Monday’s low which was the weakest since April 19.
Corn fell 0.2 percent to $3.40-3/4 a bushel and wheat lost 1.1 percent to $4.24-1/4 a bushel.
A fall in the dollar index, which eased from a 4-1/2 month high touched on Monday, lent some support to U.S. crop futures, but the market remained focused on promising signs for corn and soybean crops in the U.S. Midwest.
“The weather seems to be favourable for corn and soybeans, there is no stress for both the crops,” said Kaname Gokon at brokerage Okato Shoji in Tokyo.
With extended weather outlooks showing normal amounts of precipitation in the U.S. Midwest, investors have been liquidating long positions.
Commodity funds were net sellers of CBOT soybean futures contracts on Monday. The funds were net buyers of wheat and were even in corn, traders said.
CBOT wheat, which had been recovering from a near-decade low hit earlier this month, edged lower as jitters over crop damage in France, the European Union’s biggest wheat grower, eased.
On Euronext, September milling wheat was down 2.6 percent at 166.00 euros a tonne as it pulled away from a six-month high of 177.25 euros touched in
early trading on Monday.
After steep cuts to crop forecasts in France fuelled a jump in prices late last week, the market was waiting for more harvest progress to measure the impact of soggy, overcast conditions in late spring.
Poor yield potential in France was also being offset by strong harvest results elsewhere.
The EU’s crop monitoring service raised slightly on Monday its monthly forecast for this year’s soft wheat yield in the bloc, as expected record yields in Bulgaria and Romania helped counter a downgrade to its French outlook.
Russian wheat prices fell last week, as the market anticipated the biggest crop in post-Soviet history, analysts said on Monday.
Grains prices at 1135 GMT
Contract Last Change Pct chg Two-day chg MA 30 RSI
CBOT wheat 424.25 -4.75 -1.11% -0.24% 446.72 48
CBOT corn 340.75 -0.50 -0.15% -0.29% 378.72 31
CBOT soy 971.75 5.50 +0.57% -1.67% 1079.55 27
CBOT rice $10.34 -$0.02 -0.19% -0.62% $10.87 32
WTI crude $42.69 -$0.44 -1.02% -3.39% $46.64 29
Currencies
Euro/dlr $1.100 $0.001 +0.07% +0.23%
USD/AUD 0.753 0.006 +0.79% +0.86%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
RSI 14, exponential
