Soybeans fall for 7th day as U.S. crop thrives
Chicago soy fell for a seventh session on Tuesday to trade near its lowest in five months as near-perfect crop weather across the U.S. Midwest buoyed hopes of record production.
Corn edged up after sliding to a contract low on Monday but gains were capped by hopes of ample supplies as the U.S. crop enters its critical yield-determining phase in ideal weather.
Chicago wheat also ticked higher, as selling paused after the commodity's slide to a four-year low in the previous session when improving crop indications in the United States underscored the prospect of ample global supply.
Chicago Board Of Trade November soybeans lost 0.2 percent to $11.23-1/4 a bushel by 1140 GMT, after hitting a near five-month low of $11.16 a bushel on Monday.
December corn rose 0.1 percent to $4.06-3/4 a bushel, recovering from last session's contract low of $4.03 a bushel. Spot prices also rose slightly to consolidate after a near four-year low touched on Monday.
"We are seeing a further decline in soybeans as funds are liquidating positions. The November contract could fall below $11.00 a bushel by the end of this month," said Kaname Gokon, general manager of research at brokerage Okato Shoji in Tokyo.
U.S. crop conditions held steady, with soybean ratings at a 20-year high and corn ratings at a 15-year high.
The U.S. Agriculture Department's weekly crop progress and conditions report released on Monday pegged the soybean crop as 72 percent good to excellent and corn at 75 percent good to excellent. Both ratings were in line with market expectations.
"We see new-crop corn falling below $4.00 this week," Gokon said, referring to a key psychological threshold for the market.
Corn is entering its critical pollination stage of development this month. Plentiful soil moisture and warm weather throughout much of the Midwest posed little threat to developing corn and soybean crops.
The wheat market continued to be weighed down by plentiful supplies in key exporting countries and crop-friendly weather for the spring crop in the United States.
September wheat rose 0.4 percent to $5.59 a bushel, having closed down 4 percent on Monday when prices hit a contract low of $5.56 a bushel. Front-month prices edged higher after a four-year low a day earlier.
The USDA said that spring wheat ratings were 70 percent good to excellent, unchanged from a week ago. Winter wheat was rated 31 percent good to excellent, 1 percentage point higher than a week earlier, and the crop was 57 percent harvested.
Better-than-expected harvest results in Kansas, the top U.S. wheat growing state and part of a zone that suffered severe growing weather this year, have also dampened prices this week.
Falling wheat prices have stirred some demand from importers but cheaper Black Sea origins have pushed U.S. wheat out of the frame in a string of tenders.
Commodity funds sold an estimated net 11,000 corn contracts, 3,000 soybean contracts and 9,000 wheat contracts trade sources said.
* Front-month prices as of 1136 GMT Product Last Change Pct Move End 2013 Ytd Pct CBOT corn 410.25 1.00 +0.24 437.00 -6.12 CBOT soy 1357.75 -5.25 -0.39 1264.50 7.37 CBOT wheat 546.50 1.50 +0.28 616.75 -11.39 Paris wheat 182.25 -0.25 -0.14 190.50 -4.33 Paris maize 171.00 0.75 +0.44 171.75 -0.44 Paris rape 335.25 1.00 +0.30 366.50 -8.53 WTI crude oil 103.40 -0.13 -0.13 91.82 12.61 Euro/dlr 1.36 0.00 -0.05 0.00 0.00 * CBOT futures prices are in cents per bushel, Paris futures in euros per tonne, WTI crude oil in dollars per barrel. (Editing by Himani Sarkar and Susan Fenton)
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