Chicago | Reuters — Favourable rains in the U.S. Farm Belt combined with approaching harvests to push down Chicago Board of Trade grain and soybean futures on Monday, analysts said.
Traders, meanwhile, assessed disruptions to U.S. crop exports from Hurricane Ida at a time when global supplies are tight and demand from China is strong.
Autumn harvests are set to boost supply levels in the coming weeks after weekend rains across Iowa and Minnesota benefited crops in their late stages of development, brokers said. Earlier this summer, concerns about dryness in parts of the Midwest lifted grain prices.
“The debate is on: How much did that rain help us?” said Don Roose, president of Iowa-based brokerage U.S. Commodities. “The vote today is it helped.”
The U.S. Department of Agriculture rated 60 per cent of the U.S. corn crop in good-to-excellent condition in a weekly report on Monday, unchanged from a week earlier and one percentage point above analysts’ expectations.
“Although rains are late for U.S. corn, most of the northern/central Midwest is getting a nice drink,” said Matt Ammermann, StoneX commodity risk manager. “Temperatures are forecast to remain about normal, which is positive news for U.S. crops.”
Most-active November soybean futures dropped 20 cents to $13.03-1/4 per bushel, while the nearby September contract sank 54-1/2 cents to $13.04-3/4. Most-active corn fell 11 cents to $5.42-3/4 per bushel, and wheat eased 9 cents to $7.23-1/2 per bushel.
Traders adjusted positions ahead of first notice day on Tuesday, when deliveries against CBOT September grain and soy futures should be minimal, analysts said.
Traders and farmers are waiting to see when grain facilities reopen after being shut due to Hurricane Ida. Cargill said its Reserve, Louisiana export terminal west of New Orleans sustained “significant damage” from the storm.
Exporters sold 256,000 tonnes of U.S. soybeans to China for the 2021-22 marketing year, USDA said on Monday, extending a string of recent sales.
— Reporting for Reuters by Tom Polansek in Chicago and Michael Hogan in Hamburg; additional reporting by Naveen Thukral in Singapore.