SYDNEY, Aug 22: US soybeans fell on Thursday as traders took profits after the oilseed hit a two-month high in the previous session on forecasts for crop-threatening weather.
But the losses were checked by lower-than-expected yield findings from a widely watched crop tour.
Corn fell, under pressure from The Pro Farmer Midwest Crop Tour findings, while wheat was little changed.
Chicago Board of Trade November soybeans was down 0.5 percent at $12.97-1/2 a bushel by 0323 GMT, having earlier fallen as low as $12.92-1/2 a bushel.
Soybeans hit a two-month high of $13.19 a bushel on Wednesday. They closed up 1 percent in the previous session.
‘Beans have had a fairly strong rally after the U.S. Department of Agriculture report last week, and it’s topping out a little bit as traders bank profits,’ said Andrew Woodhouse, grains analyst at Advance Trading Australasia.
Findings from the Pro Farmer tour provided a floor to losses, analysts said.
Soybean harvests could be below average in Illinois, scouts on an annual U.S. Midwest crop tour said on Wednesday.
The Pro Farmer Midwest Crop Tour pegged soybean pod counts above last year but below the three-year average.
USDA has projected Illinois to be the top growing state of soybeans this year, rising above Iowa for the first time in a decade.
The profit-taking pressure shrugged off support from forecasts for hotter weather across the Midwest by the end of the week, increasing the threat to crops, which are in the pod-setting stage of development.
Analysts said hot, dry weather during this stage can cause pods to abort the seeds and reduce soybean yields.
December corn fell 0.9 percent to $4.79 a bushel after closing up 1.6 percent on Wednesday.
The Pro Farmer Midwest Crop Tour estimated corn yields in Illinois, which traditionally produces the most corn after No. 1 grower Iowa, at 170.48 bushels per acre, up sharply from a drought-reduced 121.60 bpa last year and the tour’s three-year average of 148.04 bpa.
December wheat was little changed at $6.48-3/4 a bushel, having firmed 0.5 percent in the previous session. (agencies)
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