LUV Stock – GRAINS-Soy eases on improved U.S. weather view; corn mixed
By Julie Ingwersen
CHICAGO, June 15 (Reuters) – U.S. soybean futures fell on Tuesday on an improved weather outlook for the Midwest crop belt, analysts said.
The forecasts for cooler and wetter conditions later this month also pressured new-crop corn futures on the Chicago Board of Trade (CBOT), although front-month July gained against back months on spreads, reflecting tight supplies of old-crop U.S. corn.
CBOT July soybeans SN1 settled down 6-1/2 cents at $14.65-3/4 per bushel, with new-crop November soybeans SX1 down 21-3/4 cents at $13.73-1/2.
CBOT July corn CN1 ended up 8-1/4 cents at $6.67-1/2 a bushel, while new-crop December corn CZ1 fell 7-1/2 cents to settle at $5.73-3/4.
CBOT wheat futures fell nearly 2% on seasonal pressure from the start of the Northern Hemisphere harvest. CBOT July wheat WN1 finished down 13 cents at $6.61-1/2 per bushel.
Soybeans and deferred cornsagged as traders reacted to weather forecasts calling for beneficial rains and cooler temperatures next week.
“We are seeing follow-through selling from improving weather. Temperatures were a little bit cooler than was forecast the previous day,” said Terry Reilly, senior analyst with Futures International.
Expectations that the moisture would bolster crop prospects helped to overshadow a drop in weekly U.S. crop condition ratings.
The U.S. Department of Agriculture late Monday rated 68% of the U.S. corn crop as good to excellent, down four points from the previous week, and 62% of the soybean crop as good to excellent, down five points.
“Even though ratings were down, they are probably going to be better in a couple weeks because we are supposed to get rain,” said Jack Scoville, analyst with the price Futures Group.
Additional pressure stemmed from a lower-than-expected monthly soy crush figure for May from the National Oilseed Processors Association.
NOPA said its members crushed 163.5 million bushels of soybeans in May, up from 160.3 million in April but below an average of analyst expectations for 165.1 million bushels.
CBOT wheat fell as the U.S. winter wheat harvest got rolling, although the harvest was only 4% complete by Sunday, the USDA said, lagging the five-year average of 15%.
Egypt’s state grains buyer, the General Authority for Supply Commodities, canceled an international wheat purchasing tender. The agency did not provide a reason, but traders said high freight rates may have been a factor.
(Additional reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore; Editing by Shounak Dasgupta, Steve Orlofsky, Jan Harvey and Dan Grebler)
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