Soybeans slip, better-than-expected yields trigger sell-off

(Reuters) – U.S. soybeans fell on Tuesday, extending losses from the previous session when reports of better-than-expected crop yields across the U.S. Midwest triggered the biggest percentage fall in prices in nearly a year.

Corn rose after falling to its lowest in more than two-months. Wheat firmed, rebounding from strong losses in the previous session when it was weighed down by the weakness in soybeans and a broad-based commodity sell-off.

FUNDAMENTALS

Chicago Board Of Trade November soybeans fell 0.33 percent to $16.63-1/2 a bushel, having slipped 4.3 percent on Monday. Soybeans had tumbled by their daily trading limit

New-crop corn rose 0.37 percent to $7.50-1/4 after falling 4.4 percent in the previous session.

December wheat rose 0.83 percent to $8.85-1/4 a bushel, having closed down 5 percent on Monday.

Soybeans was weighed down by farmers’ accounts of better-than-expected harvest yields in the U.S. Midwest, which was scorched by the worst drought in more than 50 years.

U.S. Department of Agriculture’s weekly crop progress report showed 10 percent of the soybean crop was harvested as of Sunday, up from 4 percent a week ago and just ahead of the average trade expectation of 9 percent complete.

Twenty-six percent of U.S. corn was harvested versus 15 percent a week earlier and slightly better than the expected 24 percent.

Farmers also harvested 10 percent of the soybean crop in the world’s largest grains exporter, compared with expectations for 9 percent, and up from 4 percent the previous week.

Private exporters reported the sale of 210,000 metric tons of U.S. soybeans to unknown destinations for delivery this marketing year, said the Agriculture Department on Monday.

Speculators, who cut their net long positions in Chicago grains according to the most recent regulatory data, are responsible for some of the selloff.

MARKET NEWS

The dollar hung near seven-month lows against major currencies on Monday after last week’s Federal Reserve announcement of aggressive easing dampened the outlook for the U.S. currency. <USD/>

Oil fell nearly $3 on Monday in a wild session that saw Brent plunge more than $5 a barrel in a wave of late, high-volume selling before paring losses as markets sought an explanation for the sudden crash. <O/R>

U.S. stocks fell on Monday in light trading after a rally that drove the S&P 500 last week to its highest level in nearly five years and as falling oil prices hit energy shares. .N

(Editing by Miral Fahmy)