Market moves
Grain futures on the Chicago Board of Trade posted modest gains on Tuesday after slipping to multi-week lows earlier in the session. The most-active soybean contract finished the overnight session up 0.3% at $12.57-1/2 per bushel, recovering from a session low that was its weakest price since August 26. Corn futures climbed 0.2% to $4.67-3/4 per bushel, while wheat rose 0.8% to $6.60-1/2 per bushel. Both corn and wheat had reached two-month lows during the trading day.
USDA crop progress
The U.S. Department of Agriculture on Monday reported that 64% of the soybean crop and 44% of the corn crop had been harvested. Those percentages were below market expectations and trailed the five-year average for the same period. In winter wheat, planting was reported at 63% completion versus analysts' expectations of 65%.
Factors supporting prices
Traders pointed to several developments that helped underpin futures after the earlier sell-off. Slower-than-expected harvest progress in parts of the U.S. Midwest last week was singled out as a key factor. A weaker dollar index and rising crude oil prices were also cited by market participants as providing additional support to grain values.
Weather and fieldwork
Scattered rain in portions of the Midwest last week delayed fieldwork, contributing to the lag in harvest activity. Forecasters noted that drier conditions since late last week should allow harvesting to accelerate, which traders are monitoring as a potential influence on near-term supply dynamics.
Export sales
The Agriculture Department confirmed private sales on Monday totaling 114,000 metric tons of U.S. soybeans to China. That confirmation brought the total of privately announced sales to China to 1.472 million tons over the past four days.
Outlook
Market participants remain attentive to harvest progress reports, weather developments and export confirmations. The interplay of slower fieldwork, currency moves and energy prices has provided temporary support, while continuing harvest activity and new sales data will likely guide near-term price direction.
Note: All price levels, percentages and volumes cited are taken from the most recent USDA reports and market activity referenced above.