The most active corn contract for December delivery fell 3.25 cents, or 0.47 percent, to settle at 6.9275 U.S. dollars per bushel. December wheat rose 1.75 cents, or 0.2 percent, to settle at 8.605 dollars per bushel. November soybean lost 9.5 cents, or 0.64 percent, to settle at 14.7875 dollars per bushel.
U.S. August inflation rate was 8.3 percent year on year, causing doubt that a pivot from the U.S. central bank will occur anytime soon. Future food inflation will be sticky with the Federal Reserve likely to be embroiled in its inflation fight well into mid-2023. The U.S. dollar rallied sharply on the U.S. August inflation data. The rising U.S. dollar makes grains more expensive to importers.
CBOT November soybeans above 15.00 dollars and December corn futures above 7.00 dollars offer sales opportunities. The U.S. and world economic outlook is weakening. South American and Chinese soybean crush margins are deeply negative while U.S. crush rate is sliding amid the fear of a rail strike. And a new U.S. harvest looms with additional cash supply to reach the marketplace. Chicago-based research company AgResource suggests selling of CBOT rallies based on bearish macroeconomic outlook and potential for a record large Brazilian soybean crop. World wheat demand stays terribly slow.
Argentine sources said that farmers there have sold 650,000 to 750,000 metric tons of old crop soybean Tuesday following the CBOT rally, which allows China to secure another four to six cargos of soybeans for October/November.
Corn prices are starting to eat into U.S. ethanol producer's profitability. U.S. grind rates are expected to decline in future weeks.
Harvest conditions are improving across the Central U.S.
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