Harvest Delays Lift Corn and Soybean Futures Amid China Trade Uncertainty

Corn and soybean futures tried to rebound on Tuesday after declines in the previous session. DuWayne Bosse, a market expert at Bolt Marketing, noted that harvest delays in key growing areas are supporting corn and soybeans.

However, Bosse is cautious about the technical damage done to the charts. He stated that 'I don't think you're changing the yield... So I don't think it's a market mover.'

The lack of new crop soybeans has forced some soybean processing plants in the western Corn Belt to idle. The cash basis has pulled old crop soybean bushels from anywhere in the tri-state area, but if delays continue, these plants may shut down for maintenance and cleaning.

Bosse believes that the market has not fully digested the news of China's lower 10% reciprocal duty on other agricultural goods, excluding soybeans. He is concerned that without this tariff reduction, private crushers in China will be unable to buy U.S. beans, making it difficult to meet the 25 MMT goal.

The market is also vulnerable to profit-taking at the end of the month and quarter, with funds near record long positions in corn and soybeans. Bosse expects farmer and fund selling to converge, potentially putting downward pressure on prices.