Grains slide on 'healthy' tour results
U.S. grain and soybean futures settled lower Tuesday, pressured by selling after a price jump and reports of healthy-looking crops in parts of the Farm Belt.
Chicago Board of Trade September soybeans settled down 12 3/4 cents or 1.0% at $13.09 1/4 a bushel. September corn fell 9 1/2 cents or 1.9% to $4.83 3/4 a bushel.
Corn and soybean futures jumped Monday on worries about hot, dry weather stressing Midwest crops. Traders on Tuesday then took advantage of the higher prices to sell futures, some booking profits on earlier positions. Farmers also sold futures to hedge at the increased prices for their production this fall.
"Yesterday's rally was probably a little bit overdone," said Brian Hoops, president of brokerage Midwest Market Solution in Springfield, Mo. "Today we don't have any fresh news to feed things."
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Corn and soybeans also fell Tuesday as anecdotal reports from the second day of an annual Midwest crop tour suggested high crop yields this year. A five-field average on one Indiana route on the Pro Farmer tour estimated an average yield of 186.5 bushels an acre for corn, up from a three-year average for the state of 141.14. Soybeans averaged 1156.96 pods in a 3-foot square, above the 3-year average of 1136.48.
"The pictures that I saw from the tour looked really good, and the yields that are coming out are fantastic," Mr. Hoops said.
Traders are closely monitoring weather conditions and expectations for this year's corn and soy output. Last year's severe U.S. drought cut available supplies of both commodities, making large crops this year more important.
A lack of recent rainfall and forecasts for continued dry weather have traders worried about crop conditions in parts of the Midwest, including in Iowa and Illinois. Temperatures are expected to be hot over the next two weeks, making soil moisture more vital for healthy crops.
Wheat futures were pulled lower by corn and soybeans. Wheat traders are waiting and watching for new insight on the size of this year's corn crop, since the two grains are substitutes on animal feed.
CBOT September wheat fell 7 1/4 cents or 1.1% to $6.34 1/4 a bushel. KCBT September wheat fell 6 1/2 cents or 0.9% to $6.96 3/4 a bushel. MGEX September wheat fell 10 1/4 cents or 1.4% to $7.35 a bushel.
-Kelsey Gee contributed to this article.
Write to Owen Fletcher at email@example.com
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(END) Dow Jones Newswires
August 20, 2013 14:47 ET (18:47 GMT)
DJ UPDATE: U.S. Grains, Soybeans Fall After Jump; Crop Tour Weighs->copyright
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