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 which could result in lower yields. Wheat and corn both 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 to a reduction of 1 percentage points predicted 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. CBOT November soyabeans were up 5-1/4 cents at $8.89-1/2 per bushel as of 12:37 pm CDT (1737 GMT), near the highest since August 21. Corn edged down after hitting a one-month high on expectations of lower US output following wet growing conditions, while wheat fell following three sessions of gains, a rally seen as overdone as global supplies remain plentiful.
CBOT December corn eased 2-3/4 cents to $3.90-3/4 per bushel, on pace to decline for the first time in seven sessions, snapping the longest streak of higher prices in 11 months. CBOT December wheat was down 7 cents to $4.94-1/4 per bushel, after hitting $5.03-1/4 earlier in the session, its strongest since August 26.