Chicago | Reuters — Chicago Board of Trade corn and soybean futures eased on Tuesday but remained near their nearly three-month highs as the government’s reduced forecasts for this year’s harvests continued to underpin prices, traders said.
Wheat futures were firm, supported by uncertainty over Black Sea supplies following Russian criticism of a diplomatic deal allowing maritime grain exports from war-torn Ukraine.
Soybeans notched their biggest rally since June 2021 on Monday after the U.S. Agriculture Department said that soybean production and yield would fall below the low end of market expectations.
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A separate USDA conditions report on the soy crop on Monday afternoon that showed good-to-excellent ratings falling one percentage point added more support.
“There has been a lot of talk the last few days about the benefits of late August/early September rains, but that has not shown up in any of the data, so far,” Tomm Pfitzenmaier, analyst for Summit Commodity Brokerage, said in a note to clients.
Chicago Board of Trade November soybean futures settled down 9-1/2 cents at $14.78-3/4 a bushel (all figures US$).
The most-active soybean contract peaked at $15.08-3/4, its highest level on a continuous basis since June 23, during the overnight trading session.
CBOT December corn dropped 3-1/4 cents to $6.92-3/4 a bushel after hitting the highest for the most-active contract since June 27 on Monday.
A lower forecast for the U.S. corn crop had been anticipated by traders, but together with a drought-affected crop in Europe and war-disrupted exports from Ukraine revived worries about world supply.
“Corn and soybean prices pull back following yesterday’s sharp gains, but the trade is well aware of the fact that supplies generally remain tight as we move into the fall harvest period,” StoneX chief commodities economist Arlan Suderman said in a note to clients.
CBOT December soft red winter wheat gained 1-3/4 cents to $8.60-1/2 a bushel.
— Reporting for Reuters by Mark Weinraub in Chicago; additional reporting by Gus Trompiz in Paris and Enrico Dela Cruz in Manila.
