By Kirk Maltais


-Soybeans for November delivery fell 2% to $10.77 3/4 a bushel on the Chicago Board of Trade on Tuesday, following a tumble seen in soyoil futures and in reaction to favorable weather in U.S. growing areas.

-Corn for December delivery rose 0.1% to $4.08 a bushel.

-Wheat for September delivery rose 0.2% to $5.71 3/4 a bushel.


HIGHLIGHTS


Following Along: CBOT soybeans followed the steep slide in soyoil futures Tuesday. The most-active soybean contract fell to the lowest level since November 2020, and may be showing signs of hitting a technical bottom, said Naomi Blohm of Total Farm Marketing in a note. But that doesn't mean that soybeans are in for a sustained rally anytime soon. "Any potential price corrective rally may just be another opportunity to sell--all depends on the weather outlook for August," Blohm said.

Accumulating Stocks: Palm oil closed lower on the Bursa Malaysia, which in turn pressured U.S. soyoil and by extension soybeans. Concerns about higher palm oil stockpiles in the coming weeks likely weighed on prices, said David Ng, a trader at Kuala Lumpur-based proprietary trading company Iceberg X. There has also been profit-taking activity recently, Phillip Nova strategists wrote in a note.

Positive Positioning: Corn, wheat, and soybean crop ratings all showed improvement in Monday's progress report from the USDA, a pressure point on grain futures. This was mitigated by the big selling seen since last month, leaving the trader appetite for further downside mostly exhausted -- although soybeans succumbed to the pressure. "The question now is where will the next bearish item come from to allow the rapid downtrend to persist?" Doug Bergman of RCM Alternatives said in a note.


INSIGHT


Bumper Crop: The USDA estimate for U.S. corn production in 2024 is expected to be more than 15 billion bushels, analysts surveyed by The Wall Street Journal said. They see corn output at 15.06 billion bushels ahead of Friday's WASDE report, up from the 14.86 billion bushels the agency projected in June. If this holds true into the harvest season, it will be the second-largest corn-producing year in history--after last year's record of 15.34 billion bushels. Expectations of an onerous U.S. corn crop has been a source of pressure for CBOT corn prices.

Lingering Troubles: While weather in the U.S. appears mostly supportive for farmers tending crops this summer, forecasts for the Black Sea area of Russia are showing relentless heat with little precipitation into July 17, said Daniel Flynn of Price Futures Group. "Adversity is expected to cover nearly all of corn's pollination there," he said. Nearby growing areas like France are also experiencing stifling heat.


AHEAD


-The EIA will release its weekly ethanol production and stocks report at 10:30 a.m. ET Wednesday.

-Conagra Brands Inc. will release its fourth quarter earnings report before the market opens Thursday.

-The USDA will release its weekly export sales report at 8:30 a.m. ET Thursday.

-Brazilian crop agency Conab will release the results of its 10th Grain Harvest Survey between 10 a.m to 11 a.m ET Thursday.


Kimberley Kao contributed to this article.

Write to Kirk Maltais at kirk.maltais@wsj.com

(END) Dow Jones Newswires

07-09-24 1529ET