Grain futures lower on favorable weather

Grain futures fell on Tuesday with corn and soybeans marking minor daily changes, while wheat posted a moderate decline amid favorable weather conditions in the Southern Plains and Ukraine.

On the Chicago Board of Trade, soybeans futures for delivery in November traded at $12.6938 per bushel at 11:55 GMT, down 0.22% on the day. Prices fell to a session low of $12.6938 in European trading, while days high was touched at $12.7663 a bushel in the Asian session. The oilseed rose by 0.3% on Monday but trimmed its weekly advance to 0.1% on Tuesday.

DTN reported on October 14 that moderate to heavy rain in the western and northern parts of the Midwest will disrupt row crop harvests, while recharging moisture in some areas. Meanwhile in Brazil, the worlds second biggest producer after the U.S., showers followed by lower temperatures will provide favorable conditions for crop developing while causing some planting delays.

Kazuhiko Saito, chief analyst at Tokyo-based commodity broker Fujitomi Co., said for Bloomberg: “Rains in the U.S. will likely delay soybean production, supporting prices.”

Meanwhile, corn for delivery in December fell by 0.06% to $4.3713 per bushel at 11:40 GMT. Prices shifted in a days range between $4.3938 and $4.3613. The contract fell to a 38-month low of $4.3213 on Monday but settled the day 0.9% higher.

The USDA said in its latest WASDE report that the nation will harvest a record 13.843 billion bushels of corn in 2013, 28% above last-year’s drought damaged crop. The next forecast update was scheduled for October 11 but was delayed due to the lapse of government funding.

Elsewhere on the market, wheat futures for settlement in December stood at $6.8813 per bushel at 11:54 GMT, down 0.62% on the day. The contract held in a days range between $6.9363 and $6.8813 per bushel. The grain fell by less than 0.1% on Monday.

Wheat was well supported recently as wet weather in the Black Sea Region threatened to decrease production in Russia and Ukraine. Ukraine’s national weather center in Kiev said on September 27 that the nation’s winter-wheat planting may be 30% lower than expected following record rainfall.

Meanwhile, Russia’s agriculture Minister Nikolai Fedorov said last week that his country may plant only 13 million hectares of wheat next year, down from previously projected 16.4 million.

DTN reported on Monday that scattered showers this week in the Southern plains should maintain favorable conditions for developing of wheat, while causing some plating delays. Meanwhile, a dry period in Ukraine has improved conditions for planting of the winter wheat crop and the delayed summer crop harvests. In Western Europe, a drier trend may begin later in the week, allowing recently delayed field work to resume. In Australia, a West Australia cooperative raised its forecast for Western Australias 2013-14 grain harvest to 13 million tons from Septembers estimate of between 11.5 and 12.6 million tons.