Soybean and corn futures in Chicago fell on Tuesday, as the rapid progress of the U.S. harvest and forecasts of rain in Brazil’s drought-affected growing regions fueled expectations of abundant global supplies, according to traders.
Wheat prices also dropped, as the recent strength of the U.S. dollar outweighed support from overly dry weather in key production areas. A stronger dollar typically reduces the competitiveness of U.S. exports.
“Everywhere you look, the planting weather isn’t ideal,” noted one analyst.
Steady progress in U.S. planting, where 51% of winter wheat had been sown by Sunday, eased concerns about the dry conditions.
The most active soybean contract on the Chicago Board of Trade (CBOT) dropped 21.25 cents to $10.1275 per bushel, hitting its lowest point in two weeks. Chicago corn fell 6 cents to $4.20 per bushel, marking its lowest since September 30, while CBOT wheat lost 0.5 cents to $5.92 per bushel.
Grain markets were also pressured by falling crude oil prices, as investors weighed the ongoing military escalation in the Middle East.
Traders are also focused on the U.S. government’s monthly crop forecasts due on Friday, which will include updated estimates for corn and soybean harvests, following last month’s projections of record yields for both crops.