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GRAINS-U.S. soybean, corn futures dip on profit taking; wheat firms

GRAINS-U.S. soybean, corn futures dip on profit taking; wheat firms

Reuters · 09/13/2022 15:16
GRAINS-U.S. soybean, corn futures dip on profit taking; wheat firms

Updates with closing prices, adds analyst quote

By Mark Weinraub

- Chicago Board of Trade corn and soybean futures eased on Tuesday but remained their three-month highs as the government's reduced forecasts for this year's harvests continued to underpin prices, traders said.

Wheat futures were firm, supported by uncertainty over Black Sea supplies following Russian criticism of a diplomatic deal allowing maritime grain exports from war-torn Ukraine.

Soybeans their biggest rally since June 2021 on Monday after the U.S. Agriculture Department said that soybean production and yield would fall below the low end of market expectations.

A separate USDA conditions report on the soy crop on Monday afternoon that showed good-to-excellent ratings falling 1 percentage point added more support. US/SOY

"There has been a lot of talk the last few days about the benefits of late August/early September rains, but that has shown up in any of the data, so far," Tomm Pfitzenmaier, analyst for Summit Commodity Brokerage, said in a to clients.

Chicago Board of Trade November soybean futures SX2 settled down 9-1/2 cents at $14.78-3/4 a bushel.

The most-active soybean contract Sv1 peaked at $15.08-3/4, its highest level on a continuous basis since June 23, during the overnight trading session.

CBOT December corn CZ2 dropped 3-1/4 cents to $6.92-3/4 a bushel after hitting the highest for the most-active contract Cv1 since June 27 on Monday.

A lower forecast for the U.S. corn crop had been anticipated by traders, but together with a drought-affected crop in Europe and war-disrupted exports from Ukraine revived worries about world supply.

"Corn and soybean prices pull back following yesterday's sharp gains, but the trade is well aware of the fact that supplies generally remain tight as we move into the fall harvest period," StoneX chief commodities economist Arlan Suderman said in a to clients.

CBOT December soft red winter wheat WZ2 gained 1-3/4 cents to $8.60-1/2 a bushel.

(Additional reporting by Gus Trompiz in Paris and Enrico Dela Cruz in Manila; Editing by Rashmi Aich, Ed Osmond, Mark Porter and Jonathan Oatis)

((mark.weinraub@thomsonreuters.com; +1 313 484 5282; Reuters Messaging: mark.weinraub.thomsonreuters.com@reuters.))