Soybeans edge higher ahead of key USDA grain stocks report

Soybean and grain futures on the Chicago Board of Trade traded slightly higher on Tuesday as traders adjusted positions ahead of the US Department of Agriculture’s quarterly grain stocks report while continuing to monitor weather conditions across the US Midwest.

The most active soybean contract on the CBOT rose 0.04% to $11.39½ per bushel as of 08:28 GMT, while corn gained 0.37% to $4.11¾ per bushel.

Wheat futures also advanced 0.82% to $5.84¼ per bushel.

The USDA’s quarterly grain stocks report, due later in the day, is expected to provide fresh insight into supply prospects for the upcoming corn and soybean marketing season.

Analysts, on average, expect the USDA to lower its estimate for corn planting acreage while increasing its forecast for soybean acreage.

A wave of hot weather sweeping across large parts of the US Midwest this week is also expected to add stress to crops and support prices, although forecasts for rainfall later in the week and cooler temperatures could help limit potential damage.

Soybean and corn prices have faced pressure from declining crude oil prices because both crops are used in biofuel production, while wheat has been weighed down by the ongoing harvest in the US Plains and abundant global supplies.

In its weekly crop progress report released on Monday, the USDA rated 67% of the US corn crop and 65% of the soybean crop as being in “good-to-excellent” condition, each down one percentage point from the previous week and below market expectations.

Winter wheat ratings were unchanged at 26% good-to-excellent, while harvest progress lagged expectations, reaching 48% completion compared with forecasts of 54%.

Traders said commodity funds were net sellers of corn, soybean, and wheat futures on the Chicago Board of Trade on Monday.