Chicago soybean futures ticked lower on Wednesday, after the market made its biggest daily gain since late-June in the last session due to concerns over hot and dry weather hitting U.S. yields.
Wheat slid for a second session, although tightening global supplies curbed losses.
The most-active soybean contract on the Chicago Board of Trade (CBOT) fell 0.5% to $13.24-1/2 a bushel by 0252 GMT, having firmed around 3% on Tuesday.
Wheat lost 0.4% to $7.29-1/2 a bushel, having closed down 0.2% on Tuesday and corn gave up 0.7% to $5.41-1/4 a bushel, having gained 1.8% in the previous session.
The U.S. Department of Agriculture (USDA) reported a weekly decline in crop conditions and as severely hot weather was forecast for the heart of the Midwest crop belt.
The USDA confirmed a private sale of U.S. soybeans to China in its first daily sales announcement since reporting a string of purchases by the top importer earlier this month.
Dryness over the next six months in Argentina is expected to reduce the size of the country’s two main cash crops, corn and soy while complicating navigation of grain cargo ships on the Parana River, analysts said.
Forecasters say the La Nina climate phenomenon is likely to resurface after a spotty appearance last season, bringing additional dryness to a part of South America that has already been parched for months, threatening crops, and lowering the water level of Argentina’s key grains superhighway.
Commodity funds were net buyers of CBOT corn, soybean, soyoil and soymeal futures contracts on Tuesday and net sellers of wheat futures, traders said.
Source: Reuters (Reporting by Naveen Thukral; editing by Uttaresh.V)