Grains, Beans Mixed as Investors Weigh Favorable Weather, Questionable Yields
Grain and soybean futures closed mixed on Tuesday as investors weigh the accelerated harvest and estimates for record output against concerns about crop quality.
A timely dry spell has made its way into the Midwest, allowing growers to acclerate the harvest and speed winter wheat planting. Farmers had collected 24% of the corn crop and 26% of the soybean crop as of Sunday, up from 15% and 10%, respectively, the prior week, according to the Department of Agriculture. The USDA has projected record corn output of 15.1 billion bushels and soybean production of 4.2 billion bushels, also the highest ever.
Still, farmers are reporting less-than-stellar yields in some fields after extremely wet weather flooded fields and caused fungal diseases to spread.
U.S. winter wheat was 43% planted as of Sunday, up from 30% the prior week but just behind the five-year average of 45% for this time of year. In Kansas, growers planted a fifth of the state’s entire crop last week, the USDA said. Dry weather in the so-called Black Sea region that includes Russia and Ukraine also has helped producers speed planting, consulting agency UkrAgroConsult said in a report on Tuesday.
Corn futures for December delivery rose 2¢ to $3.48 a bushel on the Chicago Board of Trade.
Soybean futures for November delivery declined 10¼¢ to $9.62¾ a bushel. Soy meal futures fell $2.10 to $306.30 a short ton, and soy oil fell 0.10¢ to 33.14¢ a pound.
Wheat futures for Chicago delivery fell 1¢ to $3.94½ a bushel, while Kansas City wheat dropped 5¼¢ to $4.01¾ a bushel.