Chicago | Reuters — U.S. soybean and corn futures edged higher on Tuesday, recovering from early weakness as investors covered short positions ahead of a key U.S. government crop outlook on Friday, traders said.
Wheat futures dipped, with concerns about weak demand for U.S. supplies weighing on the market after Egypt booked another deal for Russian wheat despite rising concerns about Black Sea shipments.
The benchmark Chicago Board of Trade September soft red winter wheat contract settled 1-1/4 cents lower at $6.56-1/4 a bushel (all figures US$).
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U.S. wheat futures closed higher on Thursday on concerns over the limited availability of supplies for export in Russia, analysts said.
Egypt’s state grains buyer, the General Authority for Supply Commodities, said on Tuesday it bought 235,000 metric tonnes of Russian wheat in an international tender.
CBOT November soybean futures gained four cents to $13.06 a bushel and CBOT December corn was up three cents at $4.98-3/4 a bushel.
The soybean market was due for a technical recovery after sinking on Monday to its lowest level since June 30, traders said. Corn futures had posted loses in nine of the previous 10 sessions.
Tuesday’s gains were kept in check, however, by forecasts for cool temperatures and rainy conditions across much of the U.S. Midwest during the next week, which will help harvest prospects for both crops, traders said.
“The U.S. Midwest weather continues to look favorable for corn and soybean production over the next two weeks, with generally mild temperatures reducing moisture needs for crops,” Arlan Suderman, chief commodities economist at StoneX, said in a client note.
Weekly condition ratings for U.S. soybean and corn crops improved more than analysts expected in the past week, though the spring wheat score slipped, U.S. government data showed on Monday.
— Reporting by Mark Weinraub; additional reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore.
