By Tom Polansek
CHICAGO, Aug 30 (Reuters) – Favorable rains within the U.S. Farm Belt mixed with approaching harvests to push down Chicago Board of Commerce grain and soybean futures on Monday, analysts mentioned.
Merchants, in the meantime, assessed disruptions to U.S. crop exports from Hurricane Ida at a time when international provides are tight and demand from China is robust.
Autumn harvests are set to spice up provide ranges within the coming weeks after weekend rains throughout Iowa and Minnesota benefited crops of their late phases of improvement, brokers mentioned. Earlier this summer season, issues about dryness in components of the Midwest lifted grain costs.
“The controversy is on: How a lot did that rain assist us?” mentioned Don Roose, president of Iowa-based brokerage U.S. Commodities. “The vote at the moment is it helped.”
The U.S. Division of Agriculture rated 60% of the U.S. corn crop in good-to-excellent situation in a weekly report on Monday, unchanged from every week earlier and one proportion level above analysts’ expectations.
“Though rains are late for U.S. corn, a lot of the northern/central Midwest is getting a pleasant drink,” mentioned Matt Ammermann, StoneX commodity threat supervisor. “Temperatures are forecast to stay about regular, which is constructive information for U.S. crops.”
Most-active November soybean futures Sv1 dropped 20 cents to $13.03-1/Four per bushel, whereas the close by September contract SU1 sank 54-1/2 cents to $13.04-3/4. Most-active corn Cv1 fell 11 cents to $5.42-3/Four per bushel, and wheat Wv1 eased 9 cents to $7.23-1/2 per bushel.
Merchants adjusted positions forward of first discover day on Tuesday, when deliveries towards CBOT September grain and soy futures must be minimal, analysts mentioned.
Merchants and farmers are ready to see when grain services reopen after being shut on account of Hurricane Ida. Cargill mentioned its Reserve, Louisiana, export terminal sustained “vital harm” from the storm.
Exporters offered 256,000 tonnes of U.S. soybeans to China for the 2021/22 advertising and marketing yr, the USDA mentioned on Monday, extending a string of latest gross sales.
(Reporting by Tom Polansek in Chicago, and Michael Hogan in Hamburg. Further reporting by Naveen Thukral in Singapore; Modifying by Hugh Lawson, Jonathan Oatis and Richard Pullin)
(([email protected]; https://twitter.com/tpolansek))
The views and opinions expressed herein are the views and opinions of the creator and don’t essentially replicate these of Nasdaq, Inc.
www.nasdaq.com