Winnipeg /Reuters – U.S. soybeans rose for a second straight day on Wednesday, recovering some recent losses ahead of a critical development period for the oilseed, while corn and wheat resumed their slides on a favorable U.S. harvest outlook.
With soybean yields largely determined in August and questions about the size of planted area, there is still uncertainty about the crop, said Terry Linn, analyst at The Linn Group in Chicago.
“Conditions are on the upswing right now, but … it wasn’t three weeks ago that the focus was on the acreage questions and the rough start to the crop,” he said. “That hasn’t gone away.”
Bull-spreading, in which traders buy the nearby month and sell a deferred contract, and tight cash markets also lifted Chicago Board of Trade August soybeans, traders said.
The contract rose 8-1/4 cents or 0.9 per cent to $9.83 a bushel.
September corn fell 7-1/4 cents or 2.1 per cent to $3.67-3/4 a bushel, after touching $3.67-1/2, its lowest level since June 25.
It could fall to $3.60 next week if weather remains good, said Kaname Gokon of brokerage Okato Shoji in Tokyo.
“Fundamentals are bearish for U.S. corn and we could see some more downside before the market stabilizes,” said Gokon.
The favorable harvest outlook suggests ample supplies ahead, said Frank Rijkers, agrifood economist at ABN AMRO Bank.
Forecasts for scattered showers in the U.S. grain belt over the next 10 days are seen boosting the corn and soybean crops.
Chicago September soft red winter wheat dropped 14-1/2 cents or 2.9 per cent to $4.96-1/4 a bushel, and touched a five-week low of $4.95-1/2, on prospects for a bumper crop in the northern Plains.
Spring wheat has good yield potential in west-central North Dakota, aided by early planting, scouts on one leg of an annual crop tour said on Wednesday.
Additional reporting by Mark Weinraub in Chicago, Michael Hogan in Hamburg and Naveen Thukral in Singapore.