Chicago | Reuters – Soybean futures on the Chicago Board of Trade ended higher on Tuesday after two-sided trade, as export demand optimism won out over forecasts for cooler, wetter weather that pressured markets.
Chicago corn eased, pressured by expectations that timely rains in August would improve heat-stressed crops.
Wheat fell for a fifth session as U.S. harvest progresses, while ongoing competition from Russian supplies diverted attention from war-related risks in the Black Sea export zone.
The Chicago Board of Trade’s (CBOT) most-active soybean contract Sv1ended 9-1/2 cents higher at $13.41-1/4 a bushel.
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CBOT wheat Wv1lost 13-1/2 cents to $6.52-1/4 per bushel, while CBOT corn Cv1 ended 5-3/4 cents lower at $5.07-1/4 per bushel.
The soybean market was monitoring U.S. export activity after an increase in the volume of weekly port inspections and the announcement of sales of 132,000 metric tonnes of soybeans to China on Monday.
“Domestic demand is strong, with new crushing facilities coming online, we just can’t afford to drop yield much below trend,” said Arlan Suderman, chief commodities economist at StoneX.
U.S. soybean crushers processed 174.5 million bushels of soybeans in June, the U.S. Department of Agriculture said, below analyst expectations of 175.5 million bushels.
A report released after Monday’s market close by the U.S. Department of Agriculture (USDA) showed good-to-excellent ratings for the U.S. corn and soybean crops decreased by more than expected in the last week as temperatures across the Midwest soared to the hottest of the summer.
The data helped to counter selling pressure after forecasts of moderate weather for August weighed on the market on Monday.
“Rain’s coming in the forecast. There’s no hot temperatures,” said Mark Schultz, chief analyst at Minnesota-based Northstar Commodity. “Beans look good. Is anything showing any stress? Not really.”
USDA data also showed that the U.S. winter wheat harvest was in its latter stages, adding pressure.
Wheat prices jumped last month after the collapse of a wartime deal allowing Ukrainian sea exports amid attacks on Ukrainian ports, which revived fears of disruption to massive Black Sea grain trade.
–Reporting by Christopher Walljasper in Chicago. Aditional reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore.
