CANBERRA – Chicago soybean and corn futures steadied on Tuesday after falling oil prices and improved crop conditions in major producer Brazil dragged them to multi-year lows in the previous trading session.
Wheat futures also rose slightly after a sharp drop on Monday.
The most-active soybean contract on the Chicago Board of Trade (CBOT) was up 0.3 percent at $12.49-3/4 a bushel after slumping to $12.36 on Monday, its lowest since December 2021.
CBOT corn dipped 0.1 percent to $4.54-3/4 a bushel after reaching $4.52 on Monday, the lowest since December 2020.
Wheat was up 0.4 percent at $5.98-3/4 a bushel. It fell 3.2 percent on Monday but remains above September’s three-year low of $5.40.
Oil prices fell 3.4 percent on Monday, dragging down corn and soybeans that are used to make ethanol and biofuels and weighing on wider grain markets. Crude rose by around 0.5 percent on Tuesday.
In Brazil, a key soybean and corn grower, recent and forecast rains have reduced concerns about yield losses as farmers begin to reap 2023/24 crops.
“Brazil’s likely weather this week will give the market more comfort with lower corn and soybean prices,” said independent analyst Tobin Gorey.
