HAMBURG: Chicago soybeans, corn and wheat were flat to weak on Tuesday in a risk-off mood as the results of US elections were awaited along with more news about the U.S/China trade war.
A report by the US Department of Agriculture (USDA) assessing the condition of US winter wheat crops below hopes supported wheat.
Chicago Board of Trade most active January soybeans were up a marginal 0.06 percent at $8.85-1/4 a bushel at 1222 GMT.
December corn was down 0.1 percent at $3.73-1/2 a bushel after spending much of the European session hardly changed. December wheat was up 0.1 percent at $5.07-3/4 a bushel.
“Soybeans and corn are not seeing a lot of movement today as the market assesses the background macro factors of the US midterm elections and the continuing US/China trade dispute,” said Charles Clack, agricultural commodity analyst at Rabobank.
“There is a hold and see mood today.”
China is ready to hold discussions and work with the United States to resolve trade disputes because the world’s two largest economies stand to lose from confrontation, Chinese Vice President Wang Qishan said on Tuesday.
The USDA will publish its closely-watched monthly World Agricultural Supply and Demand Estimates (WASDE) on Thursday.
“The USDA is expected to cut its yield forecasts for US corn and soybean crops but it must be remembered that big US harvests are still expected so a possible cut in yield estimates is having only a relatively modest impact on markets,” Clack said.
US brokerage Allendale added: “With the US elections taking place today, traders are hesitant to take big bets as the WASDE report also looms.”
After the market close on Monday, the USDA said 51 percent of US winter wheat crops were in good to excellent condition, below market expectations of 54 percent and 53 percent last week. The USDA said 84 percent of US winter wheat had been planted, below market expectations of 86 percent.
“Wheat is being supported by concern about the condition of winter crops in the United States,” Clack said.
“The crop conditions were not as good as anticipated, this is not a serious concern at the moment but development is starting to lag behind hopes.”
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Source: Brecorder
