Chicago soybeans were flat on Monday after hitting two-month highs on Friday, as dealers assessed exemptions granted to U.S. crude oil refiners for use of soy-based biofuels.

Corn firmed after a crop tour forecast the U.S. harvest below estimates from the U.S. Department of Agriculture (USDA). Wheat rose on hopes of U.S. export sales with Black Sea prices robust.

Chicago Board of Trade most-active soybeans were unchanged at $10.58-1/2 a bushel at 1150 GMT.

Corn rose 0.7% to $4.14-3/4 a bushel, wheat gained 0.7% to $5.31-1/4 a bushel.

The U.S. Environmental Protection Agency on Friday approved most backlogs of requests by small oil refineries for exemptions to compulsory biofuel use, raising concerns over reduced demand for renewable fuels often produced from soy.

“Soybeans are slightly lower as the market assesses the impact of biofuel exemptions on soy demand,” said Matt Ammermann, StoneX commodity risk manager. “It seems the exemptions leaned a bit larger than expected, but there is still so much detail to be settled that the market is having difficulty pricing the news in.”

“There are still no concrete signs of possible demand for U.S. soybeans from China.”

There was market talk last week China was seeking U.S. soybeans following the U.S./China trade war.

Consultancy Pro Farmer on Friday forecast U.S. farmers will harvest a record corn crop , putting the crop below USDA projections.

“Corn is seeing some support from the Pro Farmer crop tour’s forecast of U.S. harvest being below the USDA’s estimates. But Pro Farmer is still forecasting a record U.S. crop, so rises are limited,” Ammermann said.

“Wheat is choppy but supported by hopes of more export demand for U.S. supplies with Black Sea prices still pretty firm despite arrival of the new crop. But U.S. wheat export sales to non-traditional destinations are relatively modest.”
Source: Reuters