SYDNEY- US soybean futures held steady on Tuesday, having hit a more than two-month high earlier, as the US Department of Agriculture surprised the market with smaller-than-expected forecasts for inventories.
Corn retreated after rising 4 percent on Monday and edged lower, while wheat rose to linger near a six-week top touched in the previous session.
The most active soybean futures on the Chicago Board Of Trade were up 0.1 percent at $9.07-1/4 a bushel, as of 0448 GMT, near the session peak of $9.08-1/2 a bushel — the highest since July 29. Soybeans firmed 2.6 percent on Monday.
“The spark here also came from the USDA lowering US soybean inventory estimates,” said Tobin Gorey, director of agricultural strategy, Commonwealth Bank of Australia.
The USDA estimated US soybean supplies as of Sept. 1 at 913 million bushels, below the average estimate for 982 million. Soy stocks, however, were up 108 percent from the same point last year, largely due to the drop in US exports to China.
Also adding some support was the continued delays in harvesting, though the USDA report on Monday largely met expectations for soybeans.
The most active corn futures were down 0.2 percent at $3.87-1/4, having gained 4.4 percent in the previous session when prices hit their highest since Aug. 12 at $3.88-1/4 a bushel.
Corn stocks were at 2.114 billion bushels, the USDA said, below projections for 2.428 billion and down 1 percent from a year ago. Wheat stocks were slightly above expectations at 2.385 billion bushels. – Reuters