Chicago | Reuters — Chicago soybean futures turned lower on Tuesday, as weather forecasts called for Brazil’s dry crop belts getting some much-needed rainfall in the coming days.
Kansas City hard red winter wheat futures rose on a technical bounce, as did Chicago wheat futures, traders said, even as Egypt’s purchase of Russian wheat underscored Russia’s sizeable and lower priced supplies.
Corn futures dipped to a nearly three-week low, pressured in part by crude oil prices extending gains on Red Sea security risks. O/R
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The most active soybean contract on the Chicago Board of Trade (CBOT) Sv1 settled down 14-1/2 cents at $13.12-1/2 a bushel.
The contract touched a one-week high, extending Monday’s gains, as Chicago futures rose on crude oil prices and news that Argentina plans to raise export taxes on soymeal and soyoil.
Gains were capped by forecasts showing increased chances of showers in dry parts of central and northern Brazil in the week ahead.
“Soybeans are very dependent right now on what is happening in the weather in Brazil,” said Don Roose, president of U.S. Commodities in West Des Moines, Iowa.
While different weather models have been predicting different outcomes recently, he said “it’s hard to go wrong when you’re talking about what’s coming in the next 24 hours.”
Widespread rain in Argentina has also improved crop conditions after drought, though the government’s announcement of a rise in export taxes for soymeal and soyoil has created uncertainty about export prospects.
On Tuesday, the U.S. Department of Agriculture said in a daily reporting system that exporters sold 132,000 metric tons of U.S. soybeans to unknown destinations for delivery in the marketing year that began Sept. 1, the latest in a string of sales.
CBOT most-active wheat Wv1 closed the day up 5-3/4 cents at $6.22-3/4 a bushel, while corn Cv1 settled the day down 4-1/4 cents at $4.72-3/4 a bushel.
–Additional reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore.
