Chicago | Reuters—Chicago Board of Trade corn futures extended slight gains on Tuesday as short covering and bargain buying continued to support a rebound from contract lows reached during the previous session.
Soybean futures stumbled under pressure from improving U.S. crop conditions, and wheat futures also weakened.
Favorable U.S. weather conditions have hung over the markets and fueled expectations for bumper autumn harvests.
After trading ended on Monday, the U.S. Department of Agriculture raised its good-to-excellent condition rating for the nation’s soy crop by four percentage points to 70 per cent, exceeding traders’ expectations. U.S. corn and soy crop conditions were the best for the middle of July since 2016, agency data showed.
Read Also
Feed Grains Weekly: Price likely to keep stepping back
As the harvest in southern Alberta presses on, a broker said that is one of the factors pulling feed prices lower in the region. Darcy Haley, vice-president of Ag Value Brokers in Lethbridge, added that lower cattle numbers in feedlots, plentiful amounts of grass for cattle to graze and a lacklustre export market also weighed on feed prices.
Some traders had already factored good crop ratings into the markets, said Karl Setzer, partner at Consus Ag Consulting.
“These ratings are high but it’s also mid-July,” Setzer said. “These crops should look good in mid-July.”
The most-active CBOT corn contract Cv1 ended 1-3/4 cents higher at $4.19-3/4 a bushel. The December contract CZ25, which represents corn that will be harvested this autumn, hit a low of $4.07-1/2 on Monday.
“We remain fundamentally constructive on CBOT corn and see value for consumers at current levels,” analysts at JPMorgan said, calling the market oversold.
CBOT soybeans Sv1 closed down 5-1/4 cents at $10.01-3/4 a bushel after touching $9.98-1/4 on Monday, the lowest level since April 9.
The U.S. soybean crush in June exceeded an average of analysts’ expectations and reached the highest ever level for that month, while soyoil stocks dropped to a five-month low, according to National Oilseed Processors Association data.
Traders continued to monitor sweeping tariffs proposed by U.S. President Donald Trump amid uncertainty over how potential retaliation against the duties could affect U.S. export sales.
In global demand news, Algerian state grains agency OAIC bought about 1 million metric tons of milling wheat in an international tender, European traders said.
CBOT wheat Wv1 closed down 3-1/2 cents at $5.38 per bushel and touched its lowest price since June 30.
—Additional reporting by Gus Trompiz in Paris and Peter Hobson in Canberra
