Chicago | Reuters — Chicago soybean futures rose on Tuesday, a day after the market’s largest drop in six months slowed a rash of farmer selling, traders said.
Chicago wheat futures rose slightly but were capped by a strong U.S. dollar, while CBOT corn gained on fresh export sales to Mexico.
CBOT November soybeans closed up 10-1/4 cents at $10.44 (all figures US$).
December corn closed up 2-1/4 cents at $3.91-1/4 per bushel, while CBOT December wheat was down 1/4 cent at $5.94 per bushel.
Soybeans attempted to regain ground after falling 31-3/4 cents on Monday, but were hemmed in by a lack of daily export sales that have become increasingly frequent in recent weeks, said Mark Schultz, chief analyst at Northstar Commodity.
Schultz said the soybean harvest across much of the U.S. Midwest is nearly finished, but selling by farmers could still temper rallies.
The U.S. Department of Agriculture (USDA) is due to release its weekly crop progress estimates Tuesday afternoon.
“When it goes up 15 cents, there better be some buying underneath by China. If not, there’s going to be some selling pressure,” he said.
Wheat attempted to move higher overnight as dryness in the Black Sea region and the U.S. Central Plains drew concerns for upcoming crops.
“Short-term, meaning the balance of our current crop year, we’ve got ample supply,” said Tom Fritz, commodity broker at EFG Group. “Looking at the new crop, so far it’s going to be a rough start.”
Corn lifted on news that exporters sold 110,000 tonnes for delivery to Mexico, USDA reported.
As U.S. farmers transition from harvesting soybeans to corn, Schultz said yields are coming in below expectations.
“They’re still good yields, but it’s not the record yields they thought they had,” he said.
— Reporting for Reuters by Christopher Walljasper in Chicago; additional reporting by Naveen Thukral and Sybille de La Hamaide; includes files from Glacier FarmMedia Network staff.