Corn, soybeans fall as weather allows more USA plantings

U.S. corn exports are tracking 3.5% ahead of last year through Week 39

U.S. corn exports are tracking 3.5% ahead of last year through Week 39

Chicago Board of Trade (CBOT) agricultural futures settled higher on Tuesday, with corn rising almost 3 percent, as a monthly demand and supply report sharply lowered USA production estimates.

The corn troubles are the latest blow to US farmers struggling with lost markets and trade wars.

The Chicago Board of Trade most-active corn contract fell 0.7% to $4.13 a bushel by 1127 GMT, adding to Friday's decline of 1.1%. "The USDA is verifying a lot of our fears".

Commodity funds were net buyers of CBOT corn, soybean, soymeal, soyoil and wheat futures contracts on Monday, traders said.

"The big story in today's session is likely going to be the release of the monthly balance sheets", said Karl Setzer, senior market analyst at Growmark.

The USDA is expected to cut its estimates for USA corn and soybean production and yields from May due to persistent spring rains that stalled plantings. However, due to upward revisions in demand ending stocks were raised to 1.045 billion bushel in the new crop category and 1.07 billion bushel on old crop.

The USDA report also says disputes with China and other nations have reduced corn exports for the current-year crop by 100 million bushels and soybean exports by 75 million bushels. Brazil and Argentina production were left unchanged.

Soybean futures briefly turned higher before retreating to negative territory.

China's soybean imports fell 24% in May from the same month a year ago, customs data showed on Monday, as the ongoing Sino-U.S. trade war and deadly African swine fever checked demand.

A month ago, USDA had forecast 2019/20 corn production of 15.030 billion bushels, with average corn yield coming in at 176.0 bushels per acre.

The average of analysts' expectations for soybean production was 4.123 billion bushels, based on a yield of 49.0 bushels per acre.