Grains-Wheat, Corn, Down on U.S. Crop Conditions, Weather

July 10th, 2019


Category: Grains

( – Chicago corn and wheat futures settled down on Tuesday after the U.S. Department of Agriculture (USDA) raised its condition ratings for both grains and more crop-friendly weather was forecast for the Midwest.

“This downward trend has been led by wheat,” said Ted Seifried of Zaner Group. “These crop conditions are absolutely bearish.”

Soybean futures turned higher, rallying from early declines, supported by a decline in weekly USDA crop condition ratings.

Chicago Board of Trade September corn futures settled down 7 cents, at $4.32-1/2 a bushel.

CBOT September wheat settled down 8-1/4 cents at $5.02-3/4 a bushel after dipping below $5 for the first time since June 10.

August soybean futures settled up 7 cents at $8.86 a bushel, holding above chart support at the contract’s 50-day moving average near $8.69-1/2.

The USDA said in its weekly crop report on Monday that 57% of the U.S. corn crop was in good to excellent condition, up from 56% last week and matching analysts’ expectations.

“There was no bullish news in this report,” said Seifried.

The USDA said 64% of U.S. winter wheat was in good to excellent condition, up from 63% last week and above expectations of 63%. Some 47% of the U.S. winter wheat harvest was completed, above trade expectations for 45%.

However, the USDA said 53% of U.S. soybeans were in good to excellent shape, down from 54% last week and bucking analyst expectations for an improvement.

“Soybeans are trying to find some independent strength,” said Seifried.

U.S. grain futures rose on Monday after forecasts for hot and dry weather in the U.S. Midwest in the coming days, raising concern that late-planted corn and soybean crops may be stressed. But some forecasts on Tuesday included rain later in the week.

“We’re not exactly sure what to make of this weather,” said Seifried. “The dry air could help, but it could also distress the crops.”

Wheat futures faced additional pressure from stiff competition for export business, given ample global supplies.

Russia’s 2019 grain crop may be 2% to 5% bigger than last year’s, said Roman Vilfand, head of research at Russian weather forecaster Hydrometcentre.

Egypt’s main state wheat buyer purchased 240,000 tonnes of Romanian and Ukrainian wheat at an international tender. No U.S. wheat was offered.

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