Chicago | Reuters – Chicago Board of Trade soybean futures fell on Tuesday after hitting their highest price in December as traders assessed risks from unfavorable crop weather in Brazil.
Wheat and corn futures rose.
Traders continue to closely monitor Brazil's weather as the country is the world's largest soybean supplier and competes with the United States for export business. Heat and drought have damaged crops in northern and central areas, although analysts said midday forecasts on Tuesday looked wetter than the outlook earlier in the session.
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“For some farmers, losses are significant, but at short distances crops look good,” said Arlan Suderman, chief commodities economist at brokerage StoneX.
Cuts to Brazil's crop estimates are “not yet large enough to require an increase in U.S. exports,” he added.
The U.S. Department of Agriculture confirmed the sale of 198,000 tons of U.S. soybeans to unknown destinations in a daily announcement. It was the fifth straight session in which the USDA reported daily U.S. soy sales to China or unknown destinations.
“This good sales momentum was reinforced by fears of deterioration in earnings potential in Brazil, where weather conditions appear to be unfavorable this week,” consultancy Agritel said.
Most active CBOT soybeans Sv1 closed down 12-1/4 cents at $13.23-3/4 a bushel, after earlier rising to their highest price since Nov. 30. Heavy losses in energy markets also weighed on soybean and soybean oil futures, brokers said.
CBOT corn Cv1 rose 3-3/4 cents to close at $4.85-1/4 a bushel.
Wheat Wv1 closed up 16 cents at $6.25-1/2 a bushel on short selling, traders said, after recovering last week on a series of sales of soft red winter wheat from the U.S. to China had.
“Yesterday was the first time in a long time that we didn't have a wheat sale,” said Jim Gerlach, president of brokerage firm A/C Trading. “Today’s action makes me think that maybe we did.”
In global demand news, traders said Algeria and Tunisia had purchased wheat in separate international tenders.
–Additional reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore.
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