July 28, 2020 / 10:55 AM / 12 days ago

GRAINS-Soybeans drop 1.5% to hit 12-day low on favourable U.S. weather

 (Updates prices, adds quote, changes dateline)
    * USDA says 72% of corn and soybeans in good-to-excellent
shape
    * USDA confirms more U.S. exports 
    * Production prospects in Russia rise 

    By Colin Packham and Sybille de La Hamaide
    SYDNEY/PARIS, July 28 (Reuters) - U.S. soybean futures fell
as much as 1.5% on Tuesday to hit a 12-day low after the U.S.
Department of Agriculture said the condition of crops were well
ahead of market estimates, reinforcing expectations for a
sizable U.S. harvest.
    Corn fell over 1% as favourable U.S. weather conditions were
seen boosting prospects for the crop and wheat edged lower, also
pressured by hefty global supplies.
    The most active soybean futures on the Chicago Board Of
Trade were down 1.4% at $8.86-3/4 a bushel by 1030 GMT,
having earlier hit $8.85-1/4 a bushel - the lowest since July
16.
    The USDA crop condition report was driving losses, traders
said.
    "The USDA report caught the market off-guard. The report
shows that concerns about U.S. crops are overdone," said a
Melbourne-based grains trader, who requested anonymity as he is
not authorised to speak with the media.
    The USDA on Monday rated 72% of both corn and soybeans as
good-to-excellent condition, better than the average of
estimates in a Reuters survey of 10 analysts that had the crops
holding steady at 69% in the past week.
    However, continued strong demand for U.S. exports limited
losses.
    "The soybean price is also down in the wake of the crop
progress report, though its fall has been slowed by positive
demand data," Commerzbank said in a note.
    The USDA on Monday confirmed U.S. soybean export sales to
China, along with shipments to Mexico. It was the 10th straight
day that the USDA announced soybean sales to either China or
unknown destinations, often believed to be China. 
    The most active corn futures were down 1.1% at
$3.30-3/4 a bushel while wheat slipped 0.1% to $5.27 a
bushel, after closing 2.2% lower on Monday.
    Moscow-based consultancy IKAR raised its Russian wheat crop
forecast on Monday due to high yields in some regions.
    
    
 Prices at 1025 GMT                                               
                               Last  Change    Pct     End     Ytd
                                              Move    2019     Pct
                                                              Move
  CBOT wheat                 527.00   -0.75  -0.14  558.75   -5.68
  CBOT corn                  330.75   -3.75  -1.12  387.75  -14.70
  CBOT soy                   887.00  -12.75  -1.42  955.50   -7.17
  Paris wheat Sept           182.00   -0.75  -0.41  185.75   -2.02
  Paris maize Jun            174.00    1.50   0.87  168.50    3.26
  Paris rape Aug             385.00    2.75   0.72  387.25   -0.58
  WTI crude oil               41.30   -0.30  -0.72   61.06  -32.36
  Euro/dlr                     1.17    0.00  -0.21  1.1210    4.60
 Most active contracts - Wheat, corn and soy US cents/bushel,
 Paris futures in euros per tonne
 

 (Editing by Sherry Jacob-Phillips and Emelia Sithole-Matarise)
  
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