Chicago | Reuters — U.S. soybean futures fell Wednesday on technical selling and forecasts for welcome rains in northwestern portions of the U.S. Midwest, but wheat and corn futures edged higher.
Chicago Board of Trade November soybeans settled down 8-1/4 cents at $13.53-1/4 per bushel (all figures US$).
CBOT December wheat ended up 2-3/4 cents at $7.51-1/4 a bushel and December corn rose 1-1/2 cents to finish at $5.65 a bushel.
Soybean futures declined after a weak close on Tuesday, when the November contract hit a two-week high, only to retreat and end lower on the day. Additional pressure on Wednesday stemmed from declines in global vegetable oil markets, which pressured allied soyoil futures.
“Soybean prices saw light follow-through technical selling today after an attempt to break out of the topside of this summer’s chart formation failed on Tuesday,” Arlan Suderman, StoneX chief commodities economist, wrote in a client note.
However, he noted, the market found underlying support from recent export business. The U.S. Department of Agriculture on Wednesday confirmed private sales of 131,000 tonnes of U.S. soybeans to China, the latest in a series of recent deals. USDA has announced fresh sales of U.S. soybeans each business day since Aug. 5.
Weather forecasts called for showers in the northwestern Midwest that could improve production prospects for late-maturing crops.
“A significant increase in rainfall is expected Friday through early next week… The rains may lead to some improvements for corn and soybeans, but the corn crop has already passed the critical pollination phase and soybeans are now beginning to drop leaves,” space technology company Maxar said in a note.
Brokers continued to digest findings from this week’s Pro Farmer Midwest Crop Tour. Nebraska corn yield prospects are above average, the tour said late Tuesday, but soybean pod counts fell below average. In Indiana, corn yield prospects and soybean pod counts are above the tour’s three-year average.
The tour is expected to release numbers for Illinois and western Iowa late Wednesday.
CBOT wheat bounced after a round of fund-driven long liquidation, with signs of global export demand lending support.
Egypt’s state grain buyer purchased 120,000 tonnes of Romanian wheat and 60,000 tonnes of Ukrainian wheat, while traders said Algeria’s state grains agency bought up to 290,000 tonnes of optional-origin milling wheat on Tuesday.
— Reporting for Reuters by Julie Ingwersen in Chicago; additional reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore.