SYDNEY, Sept 9: U.S. Soybeans climbed on Monday as traders positioned themselves for an expected cut later this week to the U.S. Department of Agriculture’s (USDA) production forecast following prolonged unfavorable weather.
Corn edged lower after jumping 1.6 percent in the previous session, while wheat fell after posting its first gain in eight sessions on Friday.
Chicago Board of Trade November soybeans rose 0.4 percent to $13.72-3/4 a bushel by 0304 GMT.
Soybeans jumped more than 1 percent earlier in the session to $13.84 a bushel, near an 11-month high of $14.09-1/2 hit last week.
‘The new week began with some impressive gains in soybeans as traders are positioning for the [USDA September crop] report due this Thursday,’ said Joyce Liu, investment analyst, Phillip Futures in Singapore.
‘Many are expecting downward adjustment to the yield per acre in soybeans, which has been more hard-hit than corn as a result of the dry weather.’
After prolonged dry weather across key growing regions, analysts expect the USDA to trim its soybean yield projections to 41.2 bushels per acre (bpa).
The USDA pegged soybean yield at 42.6 bpa in August.
Forecasts for continued unfavorable weather also underpinned gains, analysts said.
Updated weather models called for continued dry weather, for much of the next week with only light showers. [https://apac1.Pointcarbon.Cp.Extranet.Thomsonreuters.Biz/trading /agsdashboard/na/usa/midwest/?sdtc=1]
December corn fell 0.5 percent to $4.66 a bushel. Corn drew support at the end of last week as traders squared positions, analysts said, following steep losses on harvest pressure, which shrugged off the threat of weather-driven yield cuts from the USDA.
Analysts said the impact on corn is likely to be less severe compared to soybeans, but the market does expect the USDA to cuts its production forecast. They expect the USDA to peg corn yields at 153.7 bpa, down from the 154 bpa forecast in August.
December wheat fell 0.5 percent to $6.44-1/2 a bushel, having posted the first gain in eight sessions on Friday when the grain closed up 1.2 percent.
(AGENCIES)
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