Grain futures mixed, soybeans fall as rain seen aiding crops

Grain futures were mixed on Tuesday with corn and wheat marking minor daily gains, while soybeans declined as weather forecasts showed expectations for rainfall in the Midwest that would ease stress on the oilseed crop.

On the Chicago Board of Trade, soybean futures for delivery in November fell by 0.67% to $13.4738 at 12:19 GMT. Prices held in range between days high and low of $13.5275 and $13.4063 per bushel respectively. The oilseed fell 1% on Monday, extending its weekly decline to nearly 1.6% after adding 0.98% in the preceding five-day period.

Soybeans lost 13% in August amid expectations that dry and warm weather might curb yields as plants were left prone to damage by rains in the beginning of the summer season which delayed crop development. However, MDA Information Systems LLC said yesterday that rainfall is expected to increase across the northwestern parts of the Midwest in the next six to ten days and ease stress on the crops.

The USDA said in its weekly crop progress report on Monday that soybeans condition has slightly deteriorated last week. As of September 8, 16% of the crop was categorized as “Very poor” and “Poor”, compared to 15% in the preceding week and 36% a year earlier. Meanwhile, 32% of plants fell in the “Fair” category, 1% more than a week earlier and the same as the comparable period in 2012. As for the premium quality, 52% of the crop was rated good-excellent, 2% below the previous week and well above last year’s 32%.

The USDA will update its crop forecasts on September 12. Market analysts expect the agency to trim its August projection by 3.7% to 3.13 billion bushels. Meanwhile, the corn yield forecast is expected to be reduced to 153.7 bushels per acre, down from 154 bushels estimated in August. Soybean yields forecast is likely to be cut to 41.2 bushels per acre from 42.6 last month.

According to the Professional Farmers of America, which made a four-day tour of fields in seven Midwest states in the second half of August, soybean output may fall by 3% below USDA’s projections. Soybeans jumped 15% in August as deteriorating weather conditions threatened yields. Meanwhile, corn production might contract by 2.2% below the government agency’s 13.763 billion bushels forecast but it is still expected to be record high.

On the Chicago Board of Trade, corn futures for delivery in December traded at $4.6338 per bushel at 12:08 GMT, down 0.08% on the day. Prices ranged between days high and low of $4.6325 and $4.6088 per bushel respectively. The grain fell by 1% on Monday after settling last week 3% lower.

The USDA reported that corn condition has also slightly worsened last week. As of September 8, 17% of the crop was rated very poor-poor, compared to 16% a week earlier and 52% last week. Meanwhile, 29% of plants were categorized as “Fair” from 28% in the preceding week and 26% in 2012. As for the premium quality, 54% of the crop was rated good-excellent, 2% below the previous week and 32% above the same period last year.

Elsewhere on the market, wheat futures for delivery in December rose by 0.04% to $6.4225 per bushel at 12:13 GMT. Prices ranged between days high and low of $6.4488 and $6.4013 a bushel respectively. The grain fell 1.04% on Monday after settling 1.1% lower last week.

The USDA reported that spring wheat harvesting has surpassed the five-year average pace but remained below last years tempo. As of September 8, 80% of the crop was reaped, marking a 16% advance from the preceding week and going 1% above the five-year average reading. During the comparable period in 2012, 97% of the crop was harvested.

The agency also reported that winter-wheat planting has begun and 5% of the crops were planted. This compares to the five-year average of 5% and last years 4% during the comparable week.