Chicago | Reuters — Chicago Board of Trade (CBOT) corn futures firmed slightly on Tuesday on technical trading, but still hovered near three-year lows as ample global supplies, improving South American crop prospects, and intense export competition weighed over the market.
Soybean futures turned lower, following soymeal, as improving weather in South America alleviated some soy crush market concerns, traders said.
Wheat futures ended the session unchanged to lower amid ongoing pressure from declining Russian grain prices.
Grain and soybean futures also faced pressure from the strength of the U.S. dollar, which hit three-month peaks on Tuesday after data showed U.S. inflation slowed less than expected in January.
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A stronger U.S. dollar tends to make U.S. grains less attractive on the world export market amid strong global competition.
“Right now, the path to least resistance is down,” said Susan Stroud, an analyst with the No Bull newsletter and commodity advisory service.
The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 settled down 6-3/4 cents at $11.86-1/4 per bushel, while CBOT corn Cv1 closed up 1/4-cent at $4.30-3/4 a bushel. CBOT wheat Wv1 settled unchanged at $5.97-1/2 per bushel.
The U.S. soybean crush slowed in January from the prior month’s record as frigid weather disrupted operations at several processing plants, analysts said ahead of a National Oilseed Processors Association (NOPA) report due Thursday.
Grain participants are shifting their focus towards U.S. planting forecasts expected later this week at a U.S. Department of Agriculture (USDA) conference.
The allocation of U.S. acres between corn and soybeans this spring could give a further steer to grain markets, which have been battered by harvest prospects in South America.
But market analysts said that, on a fundamental level, the numbers are expected only to nudge markets one way or another. The reason: Market participants are prepared to see hefty numbers.
–Additional reporting for Reuters by Gus Trompiz in Paris and Peter Hobson in Canberra.
