Chicago corn and soybean futures were little changed on Tuesday as traders squared positions before U.S. government forecasts later this week that are being closely watched as a gauge of potential U.S. production and exports this season.

Wheat also consolidated as it held above contract lows struck last week amid ample supply in exporting countries.

Market participants are awaiting the U.S. Department of Agriculture’s global supply and demand estimates on Friday.

In a separate weekly report on Monday, the USDA reduced its ratings for corn and soybean crop conditions for a second straight week, supporting market expectations the USDA will trim its harvest yield forecasts in its September 12 supply and demand outlook.

“A reduction isn’t assured, but it is assumed by the industry, since August weather has not been favourable to this year’s corn and soybean crops, and weather in September isn’t much better,” Arlan Suderman, chief commodities economist for StoneX, said in a note.

The USDA last month forecast a record corn crop and a bumper soybean harvest.

Crop ratings for U.S. corn were still the highest for the time of year since 2018, while the soybean score fell by less than expected by analysts last week.

This Friday’s USDA report will also be scrutinised for export adjustments.

Brisk exports helped corn prices hit a six-week high on Friday, but the absence of demand from top soybean buyer China, amid a trade battle with Washington, has weighed on the U.S. soybean market.

Chinese soybean imports notched their biggest August on record, as buyers snapped up large volumes from South America.

“The further development of the soybean price is therefore likely to depend largely on whether a trade agreement is reached between the U.S. and China,” Commerzbank said.

The most active soybean contract on the Chicago Board of Trade (CBOT) was up 0.15% at $10.35-1/4 per bushel as of 1111 GMT, while CBOT corn inched down 0.06% to $4.21-1/2 a bushel.

CBOT wheat ticked up 0.05% to $5.24 a bushel.

Large volumes from Northern Hemisphere harvests together with tepid international demand have anchored wheat prices.

In Russia, the world’s biggest wheat supplier, export prices continued to decline last week as some farmers stepped up harvest sales.

The U.S. spring wheat harvest advanced to 85% complete by Sunday, slightly above market expectations, according to the USDA.
Source: Reuters