Chicago | Reuters – Chicago corn, soybean, and wheat futures eased on Tuesday as traders squared positions before a U.S. government supply and demand report this week.
Wheat ticked down with falling Russian export prices, analysts said.
Market participants are awaiting the U.S. Department of Agriculture’s global supply and demand estimates on Friday.
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In a separate weekly report on Monday after trading ended, the USDA reduced its ratings for corn and soybean crop conditions for a second straight week, supporting market expectations the USDA will trim its harvest yield forecasts in its supply and demand outlook.
Market players are expecting a small yield cut, according to Randy Place, analyst at the Hightower Report, which should support prices between now and the report’s release.
The USDA last month forecast a record corn crop and a bumper soybean harvest.
Dry and warm weather will also hit the U.S. Midwest crop belt next week. “Those are ideal conditions to get the harvest off the ground, so that’s a big part of today’s pressure,” said Place.
Friday’s USDA report will also be scrutinized for export adjustments.
Brisk exports helped corn prices hit a six-week high on Friday, but the absence of demand from top soybean buyer China, amid a trade battle with Washington, has weighed on the U.S. soybean market.
“China normally buys U.S. soybeans during this time of year, but with the South American crop being so large, they are able to purchase South American soybeans and stay out of the U.S. market,” said Brian Hoops, president of Midwest Market Solutions.
The most active soybean contract on the Chicago Board of Trade Sv1 settled down 2-1/2 cents at $10.31-1/4 per bushel, while CBOT corn Cv1 inched down 2 cents to $4.19-3/4 a bushel.
CBOT wheat Wv1 ticked down 3-1/2 cents to $5.20-1/4 a bushel.
In Russia, the world’s biggest wheat supplier, export prices continued to decline last week as some farmers stepped up harvest sales.
-Additional reporting by Gus Trompiz in Paris and Ella Cao and Lewis Jackson in Beijing.
