Corn down as USDA says U.S. crop better than expected

08/10/2021 | 06:59am

* Upbeat view of U.S. crop condition weakens corn

* Soybeans firm on China hopes, wheat also firm

* USDA world supply/demand forecasts awaited


HAMBURG, Aug 10 (Reuters) - U.S. corn futures fell on Tuesday after a U.S. Department of Agriculture (USDA) report eased concerns about the condition of crops in the United States.

Soybeans firmed on hopes of more Chinese demand while wheat also rose. Markets were shifting focus to the USDA world supply and demand report due on Thursday.

Chicago Board of Trade most active corn fell 0.8% to $5.49 a bushel by 1054 GMT. Soybeans rose 0.6% to $13.38-3/4 a bushel, wheat edged up 0.2% to $7.13 a bushel.

The USDA on Monday rated 64% of the U.S. corn crop in good to excellent condition, up from 62% last week. Analysts expected 62%.

“Corn was weakened today as the market was surprised by the unexpectedly positive view of U.S. corn crop conditions by the USDA,” said Matt Ammermann, StoneX commodity risk manager. “The market is now awaiting the USDA world supply and demand report on Thursday to see how the USDA assesses U.S. corn yields and production.”

“This is difficult to call, with crops in the eastern sections of the Midwest looking good but western regions not so good.”

The USDA on Monday reported sales of 104,000 tonnes of U.S. soybeans to unknown destinations after recent sales to China.

“Soybeans are being supported by hopes of more U.S. sales to China as market focus moves from supply to demand,” Ammermann said.

“Following U.S. sales of soybeans to unknown destinations on Monday, the market is expecting China to show up as a buyer of U.S. soybeans soon. China simply has a requirement to purchase a lot and the U.S. is about the cheapest and the sole high-volume soybean seller in the world now.”

“Wheat was firmed last week by the concerns about harvests in the EU and Russia, but more input is needed today to sustain upward momentum.” (Reporting by Michael Hogan in Hamburg, additional reporting by Colin Packham in Canberra, editing by Susan Fenton)

© Reuters 2021
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