Soybean Prices Rally Amid Improved Crop Conditions, Higher Oil Demand

The US grain and oilseed markets saw significant movements on Tuesday, with soybean prices rallying from losses experienced on Monday.

Soaring crude oil markets have pushed soybean oil prices to their highest levels in over three years, benefiting oilseed processors such as ADM and Bunge. The USDA reported that soybean conditions declined by one percentage point to 60% good to excellent for the week ended August 23, down from 69% a year ago.

The same report noted that 91% of the crop was setting pods, up six points from the previous week and three points above the five-year average. Additionally, 6% of the crop had dropped leaves, compared to the five-year average of 4%. A private export sale of 132,000 tonnes of soybeans to unknown destinations was also reported.

Corn prices continued their upward trend on Tuesday, anticipated lower yields and declining crop quality contributing to this movement. The USDA rated the nation's corn crop at 57% good to excellent, down three points from the previous week and 14 points from last year. Crop consultant Dr. Michael Cordonnier trimmed his yield estimate for US corn by one bushel per acre at 179.