Chicago soybean futures slid for a third consecutive session on Thursday with prices weighed down by expectations of welcome rains in parts of the U.S. Midwest, although losses were curbed by strong demand for U.S. supplies.
Wheat slid, giving up some of last session’s strong gains which were driven by concerns over world supplies and corn lost ground.
“Weather forecasters are expecting cooler and wetter conditions in the north west of the Midwest starting this weekend,” said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia.
“The rains are likely to arrest the yield declines…”
The most-active soybean contract on the Chicago Board of Trade (CBOT) fell 0.6% to $13.45 a bushel by 0325 GMT, near the session low of $13.43-1/4 a bushel – the weakest since Aug 13.
Wheat gave up 0.4% at $7.48-1/4 a bushel and corn lost 0.6% at $5.61-1/2 a bushel.
U.S. soybeans are in critical stage of development and rains are likely to improve crop prospects.
The U.S. Department of Agriculture on Wednesday confirmed private sales of 131,000 tonnes of U.S. soybeans to China, the latest in a series of recent deals.
The USDA has announced fresh sales of U.S. soybeans each business day since Aug. 5.
The market is digesting findings from this week’s Pro Farmer Midwest Crop Tour. Nebraska corn yield prospects are above average, the tour said late Tuesday, but soybean pod counts fell below average.
In Indiana, corn yield prospects and soybean pod counts are above the tour’s three-year average.
Commodity funds were net buyers of CBOT wheat and corn futures contracts on Wednesday and net sellers of soybean, soymeal and soyoil futures, traders said.
Source: Reuters (Reporting by Naveen Thukral; editing by Uttaresh.V)