Soya firm as crop conditions in focus
Chicago soybeans edged higher on Tuesday as lower-than-expected US crop ratings underscored mixed growing conditions, while the market awaited results from a Midwest field tour.
The most-active the Chicago Board of Trade was CBOT soybeans were up 0.3% at $13.72 a bushel.
In a weekly report after Monday's market close, the US Department of Agriculture (USDA) rated 62% of US corn crop good to excellent, down 2 points from a week earlier, and soybeans 57% good to excellent, down 3 points. Traders on average had expected no change.
The lower ratings tempered hopes for a boost to crops from rainfall forecast in the coming days.
"The market is considering downside but not any upside to yields," said Michael Magdovitz, commodity analyst with Rabobank. "The rains have come too little, too late."
Initial results from this week's Pro Farmer Midwest Crop Tour projected lower corn yields and soybean pod counts than last year in South Dakota but higher levels in Ohio, supporting expectations of contrasting yields between western and eastern growing belts.
Soybeans have also been supported by a run of sales to China.
However, monthly US soybean crushing in July, according to National Oilseed Processors Association (NOPA) data released on Monday, was below trade estimates.
"Consumers are having to make pricing decisions at 50%-60% higher than last year. We're starting to see some demand rationing," Magdovitz said.
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