Soybeans Recover Ahead of Crop Report; Corn Dips

By Jesse Newman Features Dow Jones Newswires

Soybean futures rebounded Monday as buyers returned to the market ahead of a monthly crop report expected to show smaller U.S. yields for the oilseeds. Wheat rose while corn slipped.

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Soybean prices recovered from a selloff in the market on Friday, bolstered by light buying in advance of a government report due out this week that's expected to trim federal estimates for the U.S. crop. Analysts on average predict the U.S. Department of Agriculture Thursday will peg the nation's soybean harvest at 4.4 billion bushels on yields of 49.2 bushels. That's down from the government's estimates in October for 4.43 billion bushels on yields of 49.5 bushels. The declines come as the later stages of the U.S. fall harvest revealed less-stellar yields than earlier phases.

Solid demand signals also buoyed the soybean market, with the amount of oilseeds loaded for export last week -- 91.5 million bushels -- well above the volume needed to meet USDA's annual forecast, analysts said.

Soybeans for November delivery rose seven cents, or 0.7%, to $9.84 a bushel at the Chicago Board of Trade.

Corn prices closed slightly lower, despite some positive demand signals for the grain. The USDA on Monday said private exporters had sold 130,000 metric tons of corn for delivery to unknown destinations. That's good news for the corn market, though concerns linger as demand falters for exports of ethanol and dried distillers' grains, both of which are derived from corn.

Analysts said ongoing reports of better-than-expected yields from harvest weighed on corn prices, with many expecting the USDA to boost its estimates for U.S. corn production later in the week.

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Still, speculative investors are holding a large net-short position in the market, limiting corn's loses in the run-up to the report.

CBOT December corn shed 1/4 cent, or 0.1%, to $3.48 a bushel.

CBOT December wheat gained five cents, or 1.2%, to $4.30 3/4 a bushel.

Write to Jesse Newman at jesse.newman@wsj.com

(END) Dow Jones Newswires

November 06, 2017 15:57 ET (20:57 GMT)