LONDON: US corn futures fell to their lowest level in more than 2-1/2 years on Monday as generally favourable crop weather increased the likelihood of a massive harvest this year while soybean prices also eased.
Wheat futures were mixed with contract lows set in Paris while a weaker dollar helped to stem the decline in Chicago which set contract lows last week.
"US weather remains cool, and the presence of showers continues to support mostly favourable yield prospects," said Luke Mathews, commodities strategist at the Commonwealth Bank of Australia.
CBOT December corn was off 0.1 percent at $4.75-1/2 a bushel at 1152 GMT after earlier trading as low as $4.72, the weakest price for the second month since October 2010.
The key new crop corn contract has fallen sharply since mid-June as beneficial weather boosted the US crop outlook and prices are now 17 percent below the peak set during that period.
Large speculators have been building up a net short position during the decline, regulatory data shows. They had held a net long in early June and first switched to holding a net short in the week of June 18.
CBOT August soybeans stood 0.5 percent lower at $13.42-3/4 a bushel after earlier falling to $13.28-3/4, the lowest level for the front month since June 2012.
November milling wheat in Paris fell 0.4 percent to 187.00 euros a tonne after setting a contract low of 185.75 euros. September wheat on the CBOT rose 0.15 percent to $6.51-1/4, hovering just above a contract low of $6.48 a bushel set last week.
Dealers said wheat prices had been driven down mainly by the weakness of the corn market.
"In view of the much tighter market situation (in wheat compared with corn), we regard the wheat price slump as exaggerated," Commerzbank said in a market note on Monday.
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