US soyabeans rose to a three-week high on Tuesday, underpinned by a US Department of Agriculture report showing a slight deterioration in crop ratings that could result in lower yields. Wheat and corn declined at the Chicago Board of Trade in relatively thin volumes in all three commodities, with many investors awaiting a possible interest rate hike on Thursday by the Federal Reserve.
USDA, in a report after the close of trading on Monday, cut good-to-excellent condition ratings for the US soyabean crop by 2 percentage points, compared with a one-point reduction expected by analysts. The soyabean crop, which will be harvested in the coming weeks, was rated 61 percent good to excellent, down from 63 percent a week ago and 72 percent a year earlier.
“The crop condition reactions kicked off (the soyabean rally), but it’s really slow,” said Terry Reilly, analyst at Futures International. “People are waiting to see what the Fed says later this week, which will impact commodity prices.” CBOT November soyabeans settled up 4-3/4 cents at $8.89 per bushel, near the highest since August 21. Corn edged down after hitting a one-month high on expectations of lower US output because of wet growing conditions, while wheat fell after three sessions of gains, a rally seen as overdone as global supplies remain plentiful.
CBOT December corn eased 3 cents to $3.90-1/2 per bushel, declining for the first time in seven sessions and snapping the longest streak of higher prices in 11 months. CBOT December wheat was down 6-1/2 cents to $4.94-1/4 per bushel, after hitting $5.03-1/4 earlier in the session, its strongest since August 26. “There is a feeling the rise (in wheat) may have been overdone. It was mainly supported by short covering, not fundamentals. The USDA raised its stock levels in wheat,” a European trader said, stressing that the contract had fallen below the psychological level of $5 per bushel.