Chicago | Reuters—Chicago corn and soy futures drifted down on Tuesday after the U.S. Department of Agriculture projected U.S. end-of-season supplies above market expectations in a monthly supply-and-demand report, analysts said.
Wheat futures ticked down amid a lack of bullish news, though prices received a lift after the USDA cut its supply outlook following adverse weather in Europe and the Black Sea region.
“I think the initial reaction from the trade was that they didn’t change anything on the domestic balance sheet for corn and beans, and that was disappointing,” said Ted Seifried, vice president of Zaner Ag Hedge.
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The most-active Chicago Board of Trade (CBOT) corn contract Cv1 settled down 7-1/2 cents to $4.84 a bushel. CBOT soybeans Sv1 settled down 6 cents to $10.43-1/2 a bushel while CBOT wheat Wv1 settled down 2-1/2 cents to $5.77 a bushel.
The USDA lowered its estimates for Argentina’s corn and soybean production on Tuesday after hot, dry weather wilted crops.
Grain traders have been closely monitoring dryness in Argentina, the world’s top exporter of soyoil and meal and No. 3 corn exporter, as it competes with the U.S. for global sales.
Corn production is particularly important because global inventories for 2024-25 are projected to drop to their lowest level in a decade due to robust demand and a smaller-than-anticipated U.S. harvest last year.
“We shouldn’t overlook the significance of reinforcing the narrative from last month – that corn stocks are tightening,” Jake Hanley, managing director of Teucrium Trading, said.
Meanwhile, traders are continuing to monitor whether the latest U.S. tariff measure will bring fallout for agricultural trade.
U.S. President Donald Trump’s announcement on Monday of increased tariffs of 25 per cent on steel and aluminum imports rekindled concern about retaliatory actions against U.S. exports, including crops.
—Additional reporting by Ella Cao and Mei Mei Chu in Bejing and Gus Trompiz in Paris
