Chicago corn, lower on official report, wheat extends gains on short covering

Chicago Board of Trade (CBOT) corn, soybeans settled lower on Tuesday as an official crop progress report showed ample supplies, while wheat extended gains on short covering.

The most active corn contract for December delivery fell 6.25 cents, or 1.67 percent, to

close at 3.69 U.S. dollars per bushel. December wheat delivery added 1.25 cents, or 0.26 percent, to close at 4.8625 dollars per bushel. November soybeans lost 13.5 cents, or 1.52 percent, to close at 8.74 dollars per bushel.

The United States Department of Agriculture (USDA) released its weekly Crop Report after the market closed on Monday, saying that 63 percent of the soybeans were at good to excellent condition till week of Aug. 30, unchanged from last week. Analysts said that this is contrary to market expectations of a slight decline, pressured soybeans lower as ample supply is expected on the market.

While the same report pegged that corn conditions were 68 percent of good to excellent, slipping only 1 point from last week.

Additionally, analysts said that some bearish U.S. factory data appeared to drive selling in corn and soybeans on Tuesday, pressed both of them lower. CBOT floor brokers estimate that funds have sold 6,000 contracts of corn and 6,500 contracts of soybeans before midday, according to Agresource, a Chicago-based Institute.

The manufacturing index, also known as the purchasing managers index (PMI), registered 51.1 in August, down from July's reading of 52.7, the Institute for Supply Management (ISM) said in a report Tuesday, showing that economic activity of the U.S. manufacturing sector in August expanded at the slowest pace since May 2013.

Analysts said that wheat firmed Tuesday on traders' short covering following a decline of wheat to the lowest in nearly four months. CBOT floor brokers estimate that funds have bought 3,000 contracts of wheat before midday, Agresource said in its daily commentary.