CBOT soybeans and corn slip to multi-week lows as harvest advances

what happened

Reuters reported that Chicago soybean and corn futures eased on Tuesday as investors pared bullish bets. Harvesting moved ahead across the US Midwest, and forecasts pointed to mostly favourable fieldwork weather during the week. Wheat followed corn and soybeans lower, even though concerns persist over Black Sea grain exports amid the Russia-Ukraine war.

The most-traded soybean contract on the Chicago Board of Trade fell 0.22% to $12.5-3/4 a bushel, touching an eight-week low. CBOT corn dropped 0.48% to $4.64-3/4, its lowest in more than two months, while wheat slipped 0.27% to $6.53-1/2. Harvest pressure outweighed support from renewed Chinese demand, after the USDA confirmed private sales of 114,000 metric tons of US soybeans to China.

According to the USDA's weekly crop progress report, 64% of the soybean crop and 44% of the corn crop had been harvested, both below trade expectations. Winter wheat planting reached 63%, against analysts' expectations of 65%. Commodity funds were net sellers of CBOT corn, soybeans and wheat, traders said.

why it matters

Faster harvesting usually adds supply and weighs on grain prices. Chinese purchases of soybeans and concerns about Black Sea exports are still providing some support, which suggests the decline would otherwise be steeper.

market impact

Grains: harvest pressure and fund selling push down soybean, corn and wheat prices

tags

instruments