Corn down on U.S. harvest pressure, soybeans up

Hopes for new sales to China support soybeans

  

HAMBURG- Chicago corn fell on Monday with an advancing U.S. harvest adding pressure to prices as new supplies arrive on the market.

Soybeans rose on hopes of more U.S. sales to China. Wheat drifted down with the weather good for U.S. plantings.

Chicago Board of Trade most-active corn fell 0.2% to $5.25-1/2 a bushel at 1051 GMT.

Wheat fell 0.1% to $7.22-1/2 a bushel. Soybeans Sv1 rose 0.1% to $12.86-3/4 a bushel.

U.S. corn and soybean harvests are expected to speed up across the Midwest. The U.S. Department of Agriculture (USDA) should release its U.S. crop progress report later on Monday.

"Corn is being weakened today by expectations of good progress in the U.S. corn harvest," said Matt Ammermann, StoneX commodity risk manager. "The extended forecasts for U.S. corn belts are for warm and generally dry weather and we should see a faster harvest this year."

"Soybeans are being pulled between expectations of more U.S. sales to China but with concern about high energy prices disrupting Chinese soybean crushing and also positive weather for the U.S. soybean harvest."

About 20 Chinese soybean crushing plants have stopped work to comply with curbs on industrial power consumption.

"There is belief China needs U.S. soybeans for November, December and January shipments so they would have to start buying soon," he said. "But the news about energy problems stopping Chinese crushing plants raises question marks about China's import needs."

The USDA will on Thursday give estimates for the U.S. 2021 wheat crop and U.S. quarterly grain stocks. 

"Wheat is drifting down but with no big news to start the week yet," Ammermann said. "Wheat has the background of strong demand seen with importers issuing new purchase tenders and hope Russia's export taxes will eventually switch more demand to the U.S."

"But weather also remains positive for U.S. wheat plantings."

(Reporting by Michael Hogan in Hamburg, additional reporting by Naveen Thukral in Singapore, editing by David Evans) ((michael.j.hogan@thomsonreuters.com; +49 172 671 36 54; Reuters Messaging: michael.hogan.thomsonreuters.com@reuters.net))


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