Grains-Soybeans Fall 1 pct as USDA Pegs Condition of the Crop Above Forecasts

(Agriculture.com) – U.S. soybean futures fell as much as 1 percent on Tuesday as the U.S. Department of Agriculture pegged the condition of the U.S. crop above market forecasts, stoking expectations of bumper production.

Wheat fell nearly 1 percent to extend two-day losses to nearly 3.5 percent, while corn also declined.

The most active soybean futures on the Chicago Board of Trade had dropped 0.8 percent to $8.64-3/4 a bushel by 0353 GMT, having closed down 2.5 percent on Monday and up 4.5 percent on Friday.

“The selling might simply be seasonal as confidence grows in U.S. soybean yields,” said Tobin Gorey, director of agricultural strategy, Commonwealth Bank of Australia.

The USDA said 71 percent of the soybean crop was in good-to-excellent condition, slightly above market expectations.

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Expectations that Beijing’s extra 25 percent tariff on U.S. soybeans will shift more sales to Brazil, the world’s top exporter, have contributed to a five-year high in the spread between U.S. and Brazilian prices.

Traders also noted pressure ahead of the USDA’s monthly supply and demand reports on Thursday.

The USDA is expected to begin cutting forecasts for U.S. soy exports and increasing projected stockpiles amid a trade war with top importer China.

The most active corn futures were down 0.5 percent at $3.65 a bushel, having gained 1.9 percent in the previous session.

The most active wheat futures were down 1.2 percent at $5.01-3/4 a bushel, after closing down 1.4 percent on Monday.

The USDA said 75 percent of the corn crop was in good-to-excellent condition, matching market expectations.

The USDA said 80 percent of spring wheat is in good-to-excellent condition, well above analyst forecasts.