Business Recorder (12/05/2020) - HAMBURG: Chicago wheat and corn fell on Tuesday before a closely watched U.S. Department of Agriculture (USDA) report was expected to show abundant supplies.
Wheat also weakened as Northern Hemisphere crops were expected to benefit from rain after dry weather. Soybeans were supported by hopes of more sales by the U.S. to China.
Chicago Board of Trade most-active wheat was down 0.7% to $5.13-1/4 a bushel at 1058 GMT.
Corn fell 0.08% to $3.18-1/4 a bushel. Soybeans rose 0.2% to $8.56-3/4 a bushel.
The USDA's monthly world supply-demand report at 1600 GMT is expected to estimate increased U.S. corn inventories and ample soybean supplies.
“Markets are awaiting the USDA report later today with large U.S. corn inventories expected along with a look at the new crops in the U.S. of corn, wheat and soybeans," said Matt Ammermann, commodity risk manager at INTL FCStone.
“Soybeans are being underpinned by hopes of more export sales to China, with some of China's planned purchases of U.S. soybeans in the Phase One trade deal perhaps coming at last – if the price is right."
The soybean market has been underpinned in recent sessions by Chinese demand. Chinese importers bought at least four cargoes, or about 240,000 tonnes, of U.S. soybeans, traders said on Monday.
Recent rain in Europe and the Black Sea region eased concern after dry weather.
“Some of the weather worry has been taken out of the (wheat) market in recent days," said Tobin Gorey of the Commonwealth Bank of Australia.
“But that is not to say that material reductions in production have been ruled out. The USDA reporting another modest decline in U.S. winter wheat crop conditions is an example of this point," he said.
The USDA in its weekly crop progress report after the market close on Monday rated 53% of the U.S. winter wheat crop in good to excellent condition, down from 55% the previous week.
The USDA said the U.S. corn crop was 67% planted by Sunday, ahead of the five-year average of 56%, but behind estimates in a Reuters analyst poll of 71%. U.S. soybean planting was 38% complete, above the five-year average of 23%.
“Overall U.S. planting progress and crop conditions shown by the USDA late on Monday showed no major reason for concern," Ammermann said.
“Wheat is seeing weakness today partly because of better crop weather in the United States, where fear about cold temperatures is receding. Welcome rain has also been received by wheat in parts of the European Union and Black Sea region."
Read more at https://www.brecorder.com/2020/05/12/596344/wheat-and-corn-fall-ahead-of-usda-report-soybeans-firm/