Chicago | Reuters –– U.S. soybean futures were slightly higher on Monday as early support from government data on unplanted acres was largely offset by pressure from a rainy U.S. Midwest forecast that should bolster the crop at a key stage of development.
Corn closed weak, anchored by favourable crop weather, while wheat shed more than one per cent on ample global supplies and a firm dollar that further dampened U.S. export prospects.
Corn and soybean markets were rangebound as traders awaited updated reports on developing crops from an annual crop tour of the Midwest this week. Many were seeking evidence that would confirm or refute last week’s higher-than-expected U.S. Department of Agriculture production forecasts.
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“A lot of people are questioning whether USDA was correct in their assessment about the crops, and time will tell,” said Jim Gerlach, president of A/C Trading in Fowler, Indiana.
“Most people think the crop is going to be worse than what USDA said in the east, and maybe at, or better than, what they were saying in the west,” he said.
Crop scouts on day one of the Pro Farmer Midwest crop tour found variable yield potential in Ohio and strong prospects in South Dakota.
The tour enters the heart of the Midwest farm belt later in the week and concludes on Thursday. Pro Farmer will release its U.S. production forecasts on Friday.
Analysts expect USDA to report lower crop condition ratings for corn and soybeans in a weekly report on Monday.
Chicago Board of Trade September corn closed 3/4 cent lower at $3.63-1/4 a bushel. CBOT November soybeans gained 1/2 cent to $9.17 a bushel.
Both were higher early in the session after USDA’s Farm Services Agency reported “prevented plantings” acreage above trade expectations.
Soybeans drew some support from a monthly National Oilseed Processors Association report showing a record crush in July.
September soft red winter wheat shed six cents, or 1.1 per cent, to $5.00-1/2 a bushel. September hard red winter wheat fell 7-1/2 cents, or 1.7 per cent, to $4.82-1/4 a bushel.
“We have a lot of wheat around. It keeps trying to put in a bottom, but does not have the fundamentals to support that,” said Arlan Suderman, senior market analyst at Illinois-based Water Street Advisory.
— Karl Plume reports on ag commodity markets for Reuters from Chicago. Additional reporting for Reuters by Michael Hogan in Hamburg, Naveen Thukral in Singapore and Julie Ingwersen in Chicago.
