PARIS/SINGAPORE: Chicago futures for corn, wheat, and soybeans dropped on Tuesday as U.S. crop data indicated favorable harvest prospects, and a stronger dollar weighed on prices amid a recovery in financial markets from the previous day’s downturn.
The most actively traded soybean contract on the Chicago Board of Trade (CBOT) decreased by 1.7% to $10.23-1/2 per bushel by 1137 GMT, halting a two-day upward trend. Corn futures fell by 0.7% to $4.04 per bushel, while wheat futures eased by 0.6% to $5.36-1/2 per bushel, with all three commodities hovering near their lowest levels in nearly four years.
Grain markets had initially held up during Monday’s broader selloff, supported by funds covering large short positions and a drop in the dollar, which made U.S. exports more attractive. However, renewed pressure came from a U.S. Department of Agriculture (USDA) report that highlighted strong crop conditions.
The USDA’s weekly crop report, released after Monday’s market close, unexpectedly showed an improvement in U.S. soybean crop ratings, while corn conditions saw a slight decline, aligning with market expectations. Both crops maintained their highest ratings for this time of year since 2020.
The report indicated that dry and hot weather in U.S. agricultural regions had not significantly impacted crop conditions, with moderate heat in the forecast for the week ahead easing concerns about low moisture levels in certain areas.
In addition to favorable U.S. growing conditions, large harvests in Brazil have improved the supply outlook for corn and soybeans. However, drought conditions in Ukraine and the Black Sea region may limit another major source of corn.
The USDA also confirmed strong U.S. wheat conditions, and with a large harvest in Russia, attention has shifted away from poor wheat yields in France. Meanwhile, in Argentina, weekend rains provided much-needed relief for wheat crops in the central agricultural zone after a very dry July.
