Grain “Soybeans” Prices Soar Nearly 1% After USDA Releases Crop Condition Report

CANBERRA, July 27 (Reuters) – U.S. soybean futures rose nearly 1% on Tuesday to rebound from a two-week low touched in the previous session after the U.S. Department of Agriculture (USDA) reported that the condition of crops unexpectedly deteriorated last week.

Fundamentals

The most active soybean futures on the Chicago Board Of Trade Sv1 were up 0.8% at $13.69 a bushel, as of 0056 GMT, after prices hit a July 12 low of $13.32 a bushel in the previous session.

The most active corn futures Cv1 were up 0.6% at $5.50-1/4 a bushel. Prices fell to a July 13 low of $5.32-1/4 a bushel on Monday but closed 0.7% higher.

The most active wheat futures Wv1 were up 0.4% at $6.79-3/4 a bushel, having closed 1% firmer on Monday.

The USDA 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.

Hot, dry weather in the U.S. Midwest had raised concerns about the outlook for crops in the key growing region for both corn and soybeans.

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Market Views

The dollar edged lower on Monday against a basket of peer currencies as investors positioned themselves ahead of this week’s U.S. Federal Reserve policy meeting, while cryptocurrency prices rose to their highest in weeks. USD/

Oil prices steadied on Monday after a choppy session as the spread of the COVID-19 Delta variant stoked fears about fuel demand, but losses were limited by forecasts that crude supply will be tight the rest of the year. O/R

U.S. stocks touched record highs in choppy trade on Monday and the dollar weakened, as investors avoided making new, bold bets before this week’s Federal Reserve policy meeting, which might offer clues on the outlook for monetary policy.

(Reporting by Colin Packham, Editing by Sherry Jacob-Phillips)

(([email protected]; +61-2 9321 8161; Reuters Messaging: [email protected]))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Source: Nasdaq

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