USDA cuts corn, soy condition ratings
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Milder U.S. weather expected, following heat wave
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CBOT soybeans hit lowest price since July 10
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No further major attacks on Ukraine’s grain system
(Updates with closing prices, USDA crop conditions)
By Christopher Walljasper
CHICAGO, July 31 (Reuters) – Chicago soybeans and corn fell on Monday, pressured by expectations of cooler, wetter weather across the U.S. Midwest in August.
Wheat also dropped, despite worries over Black Sea supplies, although no new major Russian attacks on Ukrainian grain infrastructure were reported over the weekend.
Chicago Board of Trade most-active corn contract lost 17-1/4 cents to finish at $5.13 per bushel, after reaching $5.08 a bushel, its lowest since July 18.
Soybeans pared losses to 50-3/4 cents, at $13.31-3/4 a bushel, after reaching $13.22-3/4, their lowest since July 10. Wheat dipped 38-1/2 cents to $6.65-3/4 per bushel.
Cooler temperatures and increased rain forecasts are expected to bolster crop development, adding pressure to markets.
“Some of the dryer spots of Iowa and Minnesota are expecting rain this week,” said Ed Duggan, senior risk management specialist at Top Third Ag Marketing. “The extended forecast, for August, they´ve taken all the heat out.”
The U.S. Department of Agriculture (USDA) cut crop condition ratings for U.S. corn and soybeans more than analysts had expected, however.
The agency rated the U.S. corn crop at 55% good-to-excellent, down two points from a week prior, while pegging the soybean crop at 52%, also down two percentage points.
The USDA reported sales of 132,000 metric tons of U.S. soybeans to China for shipment in the 2023/24 season. The agency also reported sales of 183,300 tons of soymeal to the Philippines.
“Last week was a big week for purchases of beans. If that continues, that could be another supportive factor,” said Chuck Shelby, president of Risk Management Commodities.
Traders continue monitoring the war in Ukraine after Russia in July left Ukraine’s safe export shipping agreement and attacked Ukrainian grain export ports and infrastructure for Ukraine´s exports via the European Union along the Danube. (Reporting by Christopher Walljasper in Chicago; Additional reporting by Naveen Thukral in Singapore and Michael Hogan in Hamburg; Editing by Richard Chang)
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