Soybeans slip on larger US crop outlook as corn rebounds

what happened

Newsmetry API reports that US soybean futures fell on Monday after the US Department of Agriculture projected a larger-than-expected crop late last week. Mostly dry conditions also enabled farmers to accelerate harvesting across the Midwest. Corn edged higher in a technical and short-covering rebound after Friday’s sharp losses, with prices at two-month lows attracting fresh demand. Wheat futures were little changed in mixed trading.

Grain markets continued to recover from their initial reaction to the USDA’s monthly forecasts for US corn and soybean production. The agency lifted its soybean crop estimate by more than expected and surprised traders by raising its corn harvest outlook despite adverse weather during the summer. Jim Gerlach, president of A/C Trading, said Friday’s moves had been somewhat excessive in both directions, while adding that many market participants viewed the USDA’s corn yield forecast skeptically. He said the soybean crop was likely to be as large as the record projected by the agency.

At 12:15 p.m. CDT (1715 GMT), Chicago Board of Trade November soybeans were down 6 cents at $12.86 a bushel after reaching a six-week low on Friday. December corn gained 2 cents to $4.81-3/4 a bushel following Friday’s 4% slide. Farmers were actively harvesting both crops under mostly dry Midwest skies, and analysts expected the USDA’s Tuesday report to show strong progress after its release was delayed by a day because of Monday’s federal holiday. Corn also drew support from new import tenders by South Korea and Taiwan. CBOT December wheat rose 1/2 cent to $6.71-1/2 a bushel as traders monitored Black Sea shipping delays linked to the Russia-Ukraine war.

why it matters

The larger US harvest outlook weighs on soybean sentiment and reshapes expectations for grain supplies. Corn is receiving temporary support from Asian buying, while Black Sea shipping disruptions remain relevant for wheat markets.

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