Grain futures mixed, soybeans decline amid favorable weather

Grain futures were mixed on Monday ahead of USDAs weekly crop progress with wheat posting a minor daily advance, while corn and soybeans fell.

On the Chicago Board of Trade, soybeans for delivery in November fell by 0.01% to $13.1513 a bushel at 11:46 GMT. The contract fell to a 1-month low of $13.0763 a bushel in Asian trading, after which a rebound to session high followed to $13.1738 a bushel. The oilseed plunged 1.8% on Friday and settled the week 4.76%, snapping six consecutive weekly advances.

Soybeans remained pressured amid forecasts for favorable weather conditions. DTN reported on September 20 that drier weather during the next seven days will benefit mature crops and harvests. Some rainfall in the eastern Midwest on Thursday and Friday will add moisture and favor late-filling crops.

Luke Mathews, a commodity strategist at Commonwealth Bank of Australia, said in a report: “The U.S. soybean harvest has commenced and the early yield results seem to be holding up better than expected. The oilseed market will be torn between mounting U.S. harvest pressure, changing production estimates and strong export sales results.”

The U.S. Department of Agriculture trimmed its crop estimate to 3.149 billion bushels this year on September 12, down from August’s 3.255 billion, as a result of recent unfavorable weather conditions but that would still be 4.4% higher than last year’s drought-damaged crop.

Elsewhere on the market, corn futures for delivery in December fell by 0.58% to $4.4838 a bushel at 11:45 GMT. Prices held in range between days high of $4.5088 and low at $4.4838 per bushel, the weakest level since August 1. The grain fell 1.9% on Friday and settled the week 1.6% lower after shedding 5% in the preceding two five-day periods.

Corn has been on a downward trend in the recent weeks amid improving crop conditions in the Midwest. Informa Economics raised its estimate on Friday for the 2013 crop to 13.889 billion bushels, above USDAs all-time-record-high forecast. The government agency said on September 12 that the nation will harvest a record 13.843 billion bushels of corn in 2013, confounding analysts’ projections for a drop to 13.641 billion bushels from 13.763 billion estimated in August. Domestic output will be 28% higher than last year’s drought damaged crop. U.S. corn reserves will total 1.855 billion bushels on August 31, 2014, above the previous estimate of 1.837 billion. Global inventories will surge 24% to a 12-year high, the agency reported.

Wheat advances

In the meantime, wheat futures for December settlement rose by 0.14% to $6.4713 per bushel at 11:46 GMT. Prices held in range between days high and low of $6.4913 and $6.4538 a bushel respectively. The grain retreated 1.6% on Friday but settled the week 0.8% higher after shedding 2.2% in the preceding two five-day periods.

DTN reported on Friday that scattered showers in the Southern Plains will cause minor delays to the harvest and winter wheat planting. The USDA said last Monday that as of September 15, 12% of the crop was planted, matching the five-year average pace and surpassing last week’s 10%. This marked a 7% advance from the preceding period.

Meanwhile, dry weather in the Northern Plains will improve conditions for the spring wheat harvest. The USDA said last week that as of September 15, 90% of the spring wheat crop was reaped, compared to the five-year average of 87%. This marked a 10% advance from the preceding week but fell behind last year’s 99% of crop harvested.