July 10, 2018 / 4:22 AM / 5 months ago

GRAINS-Soybeans fall 1 pct as USDA pegs condition of the crop above forecasts

    * USDA says 71 percent of soybean crop 'good-to-excellent' 
    * Wheat prices drop more than 1 percent 

    By Colin Packham
    SYDNEY, July 10 (Reuters) - U.S. soybean futures fell as
much as 1 percent on Tuesday as the U.S. Department of
Agriculture pegged the condition of the U.S. crop above market
forecasts, stoking expectations of bumper production.
    Wheat fell nearly 1 percent to extend two-day losses to
nearly 3.5 percent, while corn also declined.
    The most active soybean futures on the Chicago Board of
Trade had dropped 0.8 percent to $8.64-3/4 a bushel by
0353 GMT, having closed down 2.5 percent on Monday and up 4.5
percent on Friday.
    "The selling might simply be seasonal as confidence grows in
U.S. soybean yields," said Tobin Gorey, director of agricultural
strategy, Commonwealth Bank of Australia.
    The USDA said 71 percent of the soybean crop was in
good-to-excellent condition, slightly above market expectations.

    Expectations that Beijing's extra 25 percent tariff on U.S.
soybeans will shift more sales to Brazil, the world's top
exporter, have contributed to a five-year high in the spread
between U.S. and Brazilian prices. 
    Traders also noted pressure ahead of the USDA's monthly
supply and demand reports on Thursday. 
    The USDA is expected to begin cutting forecasts for U.S. soy
exports and increasing projected stockpiles amid a trade war
with top importer China. 
    The most active corn futures were down 0.5 percent at
$3.65 a bushel, having gained 1.9 percent in the previous
session.
    The most active wheat futures were down 1.2 percent at
$5.01-3/4 a bushel, after closing down 1.4 percent on Monday.
    The USDA said 75 percent of the corn crop was in
good-to-excellent condition, matching market expectations.
    The USDA said 80 percent of spring wheat is in
good-to-excellent condition, well above analyst forecasts.
        
 Grains prices at  0353 GMT
 Contract       Last  Change  Pct chg  Two-day chg   MA 30   RSI 
 CBOT wheat   501.75   -6.25   -1.23%       -2.62%  513.62     56
 CBOT corn    365.00   -2.00   -0.54%       -2.14%  385.49     40
 CBOT soy     864.75   -7.25   -0.83%       -3.33%  941.85     37
 CBOT rice     12.08  -$0.03   -0.25%       +0.79%  $11.71     54
 WTI crude     74.03   $0.18   +0.24%       +0.31%  $68.62     71
 Currencies                                                      
 Euro/dlr     $1.175  $0.000   -0.01%       +0.03%               
 USD/AUD      0.7476   0.001   +0.13%       +0.61%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
 RSI 14, exponential
 
 (Reporting by Colin Packham)
  
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