Chicago | Reuters—Chicago wheat and corn futures ticked higher on Tuesday after sharp declines on Monday, while most-active soybean futures closed at their lowest point in nearly four years, as expectations of ample supplies from northern hemisphere harvests hung over the market.
Rains from Hurricane Beryl are expected to provide beneficial moisture across the U.S. Midwest, while strong ratings of the U.S. corn and soy crop have continued to exert downward pressure on corn and soy futures, traders said.
Despite the bearish news supporting big U.S. crops, CBOT corn Cv1ended up 3/4 cent at $4.08-1/2 a bushel on a technical bounce after approaching a four-year low on Monday.
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“We overdid it yesterday,” Jack Scoville, analyst at Price Futures Group, said. “We’ve taken corn as cheap as it’s going to go.”
Though corn prices have recovered, soy futures continue facing challenges from a lack of demand, weak crush margins and a global oversupply, traders said.
CBOT soybeans Sv1settled down 19-1/2 cents at $10.80 a bushel, hitting its lowest point since November 3, 2020. August soybean futures SQ24 hit a life-of-contract low, settling at $11.31-1/4 per bushel.
The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1closed up 1-1/2 cents at $5.72 a bushel.
Wheat futures have benefited from strong export sales, lingering concerns over yield from the European wheat crop and worries that rains from Hurricane Beryl may slow the wheat harvest in the U.S. Plains.
However, supply pressure has also come from improving conditions for wheat in top exporter Russia, taking attention away from rain-affected prospects in France where the farm ministry said on Tuesday it expects the main wheat crop to shrink by 15 per cent from last year.
The U.S. Department of Agriculture (USDA) increased its ratings of corn, soy and spring wheat crops while estimating that nearly two-thirds of winter wheat had been harvested in Monday’s crop progress report.
Traders are also turning attention to Friday’s USDA monthly supply and demand forecasts.
—Additional reporting for Reuters by Gus Trompiz in Paris and Peter Hobson in Canberra
