US soy, corn futures fall on better crop conditions, bolster yields

 

 

US soy and corn futures fell for the first time in three sessions after conditions of the crops improved, signalling higher yields in the world's largest grower and exporter.

 

USDA said 69-percent of the soy crop was in good or excellent condition as of Aug 23, up from 66 percent last week and 61 percent at the same time last year. About 70 percent of the corn crop had the top ratings compared with 68 percent last week and 64 percent a year earlier.

 

Soy for November delivery fell as much as 1 percent to US$9.975 a bushel in electronic trading on the CBOT. They traded at US$9.9975 after gaining 3.6 percent on Monday (Aug 24), the biggest increase since Aug 3.

 

Corn for December delivery fell as much as 1.7 percent to US$3.2975 a bushel in Chicago. The grain was at US$3.3125 after adding 2.8 percent.

 

DTN Meteorlogix LLC said soy and corn crops in the Midwest ''should benefit from recent shower activity and from warmer temperatures this week, at least until cooler conditions return at the end of the week.

 

About 85 percent of the soy crops in 18 US states, which accounted for 95 percent of last year's acreage, were setting pods and beginning to fill them with beans as of Aug 23, the USDA said.

 

Pod setting is the stage in crop development that's particularly ''sensitive to moisture stress,'' according to the Iowa State University Extension.

 

According to Indian representative of the US Grains Council Amit Sachdev, India's forecast by the USDA to be Asia's largest corn exporter in 2009-10, may ban overseas shipments of the grain for a second season as the driest monsoon in seven years threatens to reduce output.

 

Still, corn futures may extend declines as higher output from the US will more than make up for smaller supplies from the South Asian nation, Pitts said.

 

The National Grain & Oil Trade Centre said China sold 194,800 tonnes of corn or 49 percent of the total on offer from state reserves in Heilongjiang province. The auction was the first phase of a plan to sell about 2.5 million tons of the grain from state reserves.

 

Wheat for December delivery fell 0.5 percent to US$4.97 a bushel after advancing 2.5 percent on Monday.

 

USDA said about 72 percent of the spring-wheat crop in six US states that accounted for 98 percent of last year's acreage, was in good or excellent condition as of Aug 23, compared with 74 percent a week earlier, and 55 percent in the same period last year.