Chicago | Reuters — U.S. grain and soybean futures on Tuesday eased on long liquidation ahead of the release of widely followed government crop forecasts on Wednesday, analysts said.
The wheat market also grappled with Black Sea supply prospects as Ukraine sought to expand a grain deal allowing exports from Black Sea ports.
The most-active CBOT wheat contract settled 18 cents lower at $8.27-3/4 per bushel (all figures US$). Corn dropped 8-1/4 cents at $6.67-1/2 per bushel and touched its lowest price since Sept. 29. Soybeans slipped 3-3/4 cents to $14.46-1/2 per bushel, after rising on Monday to their highest price since Sept. 22.
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Traders adjusted positions ahead of the U.S. Department of Agriculture’s (USDA) monthly supply and demand report. Analysts polled by Reuters expect the agency to keep its U.S. corn and soy yield estimates unchanged, but raise its estimates for U.S. wheat, corn and soybean ending stocks.
Futures markets were “prudently guarded ahead of tomorrow’s crop report,” said Rich Feltes, head of market insights for broker RJ O’Brien.
Traders will examine USDA’s world wheat projections given adverse weather ahead of harvests in Argentina and Australia, along with mixed signs about Black Sea exports, analysts said.
Ukraine wants the Black Sea grain export deal expanded to include more ports and goods, and hopes a decision to extend the agreement for at least a year will be made next week, Ukraine’s deputy infrastructure minister said.
Still it is unclear whether Ukrainian grains exports will be able to continue, Commerzbank said in a note.
“We are still far from seeing any kind of return to normality,” Commerzbank said.
Uncertainty about the economy and COVID-19 restrictions in China, the world’s biggest soybean importer, loomed over soy futures, analysts said.
USDA through its daily reporting system said exporters had sold 138,700 tonnes of U.S. soybeans to China; 144,000 tonnes of U.S. soybeans to Mexico; and 132,000 tonnes of U.S. soybeans to unknown destinations. Mexico also bought 338,600 tonnes of U.S. corn.
— Reporting for Reuters by Tom Polansek in Chicago, Gus Trompiz in Paris and Naveen Thukral in Singapore.
