Chicago | Reuters — Chicago soybean and corn futures fell on Monday on spillover pressure from crude oil along with uncertainty about export demand for U.S. supplies of both crops, analysts said.
But wheat futures rose on signs of global export demand while traders continued to monitor prospects for the renewal of an export corridor from war-torn Ukraine before a deadline next weekend. Moscow described talks with the United Nations last week about the corridor as”fairly constructive” while saying agreement was yet to be reached.
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Chicago Board of Trade December corn settled down 3/4 cent at $6.57-1/4 per bushel and January soybeans ended down 9-1/2 cents at $14.40-1/2 a bushel (all figures US$).
Outside markets pressured corn and soy futures, including declines in crude oil and a bounce in the dollar, which tends to make U.S. grains less competitive globally. U.S. crude oil sagged more than $3 a barrel as surging coronavirus cases in China dashed hopes of a swift reopening of the economy for the world’s biggest crude importer.
Corn and soyoil futures sometimes follow trends in crude oil due to their roles as feedstocks for ethanol and biodiesel.
“Crude oil is driving corn down because of the ethanol component. And export shipments were a little better than expected in corn, but still not very good,” said Tomm Pfitzenmaier, analyst for Summit Commodity Brokerage.
The U.S. fall harvest was nearly complete. Ahead of the U.S. Department of Agriculture’s weekly progress report due later on Monday, analysts surveyed by Reuters on average estimated progress as 93 per cent complete for corn and 97 per cent for soybeans.
Traders have turned their focus toward crop development in South America, Pfitzenmaier said. Much-needed weekend rains fell in Argentina, aiding soybean planting, while forecasts called for beneficial showers this week in Brazil.
Wheat futures bucked the weak trend and closed higher, with CBOT December wheat settling up 4-3/4 cents at $8.18-1/2 a bushel.
Saudi state buyer SAGO on Monday said it had bought just over one million tonnes of wheat in an international tender, with traders suggesting Russian wheat may be used to cover a large part of the optional-origin purchase.
“At $8 (per bushel), we are seeing world buyers show up. Evidently, for right now, we are at value,” said Don Roose, president of Iowa-based U.S. Commodities.
— Reporting for Reuters by Julie Ingwersen in Chicago; additional reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore.
