Soybean and cotton futures revived after an official data was released and it showed that weather extremes are set to take an unexpected large effect on the U.S. crops although not large enough to support recoveries in grain prices.
The gains followed U.S. Department of Agriculture data overnight shows that the condition of U.S. crops, beset by dryness in the western Midwest and excessive rains in the east, had deteriorated further last week than investors had expected.
Soybean futures for November was 0.7% to and was sold at $10.17 for a quarter of a bushel in early deals in Chicago, while the New York, cotton futures for December added 0.6% and was sold 68.72 cents a pound.
The 57% soybean good or excellent rating, besides being 3 points below market expectations, was well below the average of 68% for the past three years.
The U.S. cotton crop was rated at 55% good or excellent, this was a figure that is related with the three-year average, but was down by 5 points week on week.
The USDA rated the corn crop at 62% good or excellent, which was in the bear for 2 points on week, even the 1 point drop investors had expected. The three-year average reading for U.S. corn condition is 74%.
However, Chicago corn futures, even though posting gains in early trading retreated to $3.87 for a quarter bushel which was a 0.9% decline in the trade session.