GRAINS-Corn sags on recession fears, profit-taking after 2-month top
(Updates prices, adds quotes, changes byline, changes dateline from previous PARIS/SINGAPORE)
By Julie Ingwersen
CHICAGO, Aug 30 (Reuters) - U.S. wheat, corn and soybean futures fell on Tuesday, joining broad declines in commodities and equity markets as traders fretted about the health of the global economy.
Profit-taking also weighed on corn futures, a day after the benchmark December contract notched a two-month high linked to declining U.S. crop production prospects.
As of 12:59 p.m. CDT (1759 GMT), Chicago Board of Trade December corn was down 7-3/4 cents at $6.75-1/4 a bushel, a day after reaching $6.83-3/4, its highest since June 23.
CBOT December wheat was down 22-1/2 cents at $8.20-1/4 a bushel and November soybeans were down 3 cents at $14.34-3/4 a bushel.
Equity markets fell as a rise in U.S. job openings triggered fears of more interest rate hikes in the United States and Europe. U.S. crude oil futures slid more than 5% on fears that an inflation-induced weakening of global economies would soften fuel demand.
The uncertainty spread to grains as speculators exited long positions, booking profits after recent run-ups in corn and wheat prices.
"Fund managers are adjusting their investments to reflect expectations of slower economic growth – and maybe contraction – along with lower demand for commodities," StoneX chief commodities economist Arlan Suderman wrote in a client note.
Yet traders are also monitoring supply prospects as the U.S. corn and soybean crops approach maturity ahead of the fall harvest. The U.S. Department of Agriculture (USDA) late Monday rated 54% of the U.S. corn crop in good-excellent condition, down from 55% a week earlier.
That came after advisory service Pro Farmer on Friday estimated the U.S. corn yield at 168.1 bushels per acre, well below the USDA's forecast of 175.4. The Pro Farmer harvest projection followed a tour of Midwest fields that showed worse than expected effects of hot, dry weather in some zones.
"The market is still absorbing the likely lower U.S. corn crop after last week's Pro Farmer crop tour revealed a much lower yield estimate," said Tobin Gorey, director of agricultural strategy at the Commonwealth Bank of Australia.
Pro Farmer predicted a U.S. soybean crop of 4.535 billion bushels, close to the USDA's August forecast of 4.531 billion bushels. Weekly USDA ratings for the soybean crop were unchanged at 57% good-excellent.
Separately, the USDA on Tuesday confirmed private sales of 264,000 tonnes of U.S. soybeans to unknown destinations.
(Reporting by Julie Ingwersen; additional reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore; Editing by Rashmi Aich, Subhranshu Sahu and Shailesh Kuber)
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