Wheat up on U.S. crop rating, soybeans close to highs

10/27/2020 | 07:03am

* USDA view of U.S. wheat condition disappoints

* Soybeans fall back from 4-year highs^

* Corn rises as demand strong

*

HAMBURG, Oct 27 (Reuters) - Chicago wheat rose on Tuesday after the U.S. Department of Agriculture (USDA) said the current condition of U.S. winter wheat was below market expectations.

Soybeans were unchanged after hitting their highest since July 2016 on Monday, while corn rose on strong Asian demand with a series of purchase tenders on Tuesday.

Chicago Board of Trade most-active wheat was up 0.7% at $6.24-3/4 a bushel at 1150 GMT.

Soybeans were unchanged at $10.83-1/2 a bushel. Corn rose 0.6% to $4.20-1/4 a bushel.

The USDA said 41% of U.S. winter wheat was in good/excellent condition, below analysts' expectations of 52%. Around 85% of U.S. winter wheat had been planted, below forecasts of 86%.

“Wheat is supported today by the USDA’s lower than expected rating of the U.S. winter wheat condition,” said Matt Ammermann, StoneX commodity risk manager.

“But you need to remember that dryness is the main reason for the low crop condition and that rain is now forecast in parts of the U.S., which could again weaken prices.”

“More rain is also being received in parts of Russia after dryness threatened crops."

About 72% of U.S. corn had been harvested against expectations of 73%, the USDA said.

Taiwan bought 65,000 tonnes of corn from the U.S. on Tuesday while Korea bought 268,000 tonnes from various origins.

"Corn is being supported by firm demand, with the U.S. the main supplier in the export market and expected to remain so until into 2021," Ammermann said. "The U.S. harvest is also progressing more slowly than expected."

“Soybeans are seeing selling pressure after recent highs, with more rain expected in Brazil which should help Brazilian soybean planting."

"Soybeans have been supported by demand from China for U.S. beans, and an improved crop outlook in Brazil would give China more buying options.”

Brazilian soybean farmers had planted 23% of their estimated crop by Thursday. (Reporting by Michael Hogan; Additional reporting by Naveen Thukral; Editing by Jan Harvey)

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