Wheat, corn and soybean futures fall again on uncertain demand in the US

U.S. wheat, corn and soybean futures fell on Tuesday as macroeconomic concerns, strong competition from global grain exports and some forecasts for favorable rains in the Midwest next month supported production prospects, analysts said.

“The wet outlook removed the single factor providing stability to the grains and oilseeds markets, causing prices to fall today,” Arlan Suderman, chief commodities economist at StoneX, wrote in a client note.

Equity markets and crude oil futures fell as worries grew over whether the US Congress would pass the US debt ceiling deal, adding to the bearish sentiment for grains.

Chicago Board of Trade July wheat futures fell 25 cents to $5.91 a bushel, after falling to $5.88-3/4, the lowest in a consecutive schedule of the most active wheat contract since December 2020.

CBOT July corn fell 10 cents to $5.94 a bushel and July soybeans fell 40-3/4 cents to $12.96-1/2 a bushel, well below psychological support at $13 a bushel.

Wheat remained under pressure due to weak export demand for US supplies. Russian wheat export prices weakened further in anticipation of a new crop and lower demand from global importers, analysts said.

Also, buyers in the US reportedly bought about 60,000 tonnes of wheat from the European Union last week, with half expected to come from Poland and Germany, as European traders highlighted high prices for domestic US wheat.

Meanwhile, plantings of the 2023 U.S. corn and soybean crop are progressing faster than normal as producers and traders monitor drier conditions in the Midwest.

After the CBOT end, the US Department of Agriculture (USDA) in its first corn condition estimate for 2023 rated 69% of the US crop as good to excellent, below the average analyst expectation of 71% and 73%. Before.

U.S. corn planting is 92% complete, above the five-year average of 84%, and soybean planting is 83%, above the five-year average of 65%, according to the USDA.

The government is forecasting a rise in maize and soybean stocks for the 2023/24 marketing season due to forecasts for record crops.

Heavy inflows from Brazil also weighed on prices. On Monday, consultancy AgRural raised its estimate of Brazil’s total corn crop to 127.4 million tonnes, up from 125.1 million tonnes previously.