Soybeans and corn rise more than 1% on U.S. crop woes

Chicago wheat futures extend losses

  
Soybeans are seen in a field on Hodgen Farm in Roachdale, Indiana, U.S., November 8, 2019.

Soybeans are seen in a field on Hodgen Farm in Roachdale, Indiana, U.S., November 8, 2019.

REUTERS/Bryan Woolston

SINGAPORE/PARIS- Chicago soybean and corn futures gained for a second consecutive session on Tuesday after a weekly U.S. government report showed the condition of both crops deteriorated unexpectedly last week.

Wheat edged lower, falling for a fourth session running, still pressured by low export demand for U.S. supplies.

"We are in a typical weather market. Prices are firming after the crop condition report, but if the weather improves the market could give up these gains," said one Singapore-based feed grains trader at an international trading company. "We are just trying to ride it out."

The most active soybean contract on the Chicago Board of Trade (CBOT) was up 1.1% at $13.75-1/4 a bushel at 1010 GMT, having hit a July 12 low of $13.32 in the previous session.

Corn was up 1.1% at $5.52.3/4 a bushel and wheat Wv1 fell 0.3% to $6.75-1/4 a bushel.

The deterioration in the condition of the U.S. corn and soybean crops in the latest week came as dryness in growing areas west of the Mississippi River stressed crops, the U.S. Department of Agriculture said on Monday. 

The agency said good-to-excellent ratings for corn fell by 1 percentage point to 64% in the week ended July 25, below market expectations. 

The soybean crop was rated 58% good-to-excellent, down 2 percentage points from a week earlier and behind market forecasts.

Spring wheat was rated 9% good-to-excellent, 2 percentage points lower than a week earlier and 1 percentage point below the average of analysts' forecasts.

Meanwhile, Russia's southern region of Krasnodar, one of the country's largest wheat producing and exporting areas, harvested a record grain crop of 12.4 million tonnes, its governor said on social media. 

In Europe, meanwhile, crop monitor MARS expects the torrential rains that hit the western part of the bloc this month to have impaired crop quality rather than quantity. 

Commodity funds were net buyers of CBOT corn, soybean and soyoil futures contracts on Monday and net sellers of wheat and soymeal, traders said. 

(Reporting by Naveen Thukral in Singapore and Sybille de La Hamaide in Paris Editing by Subhranshu Sahu and David Goodman ) ((naveen.thukral@thomsonreuters.com; +65-6870-3829; Reuters Messaging: naveen.thukral.thomsonreuters.com@reuters.net))


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