US corn futures fell to life-of-contract lows on Monday and soyabeans briefly dipped below $9 a bushel for the first time since 2016 as favourable weather outlooks bolstered yield prospects and trade tensions threatened export demand, analysts said. Chicago Board of Trade soft red winter wheat futures also sagged and K.C. July hard red winter wheat hit a one-month low as the US winter wheat harvest expanded.
As of 12:55 pm CDT (1755 GMT), CBOT July corn was down 5-1/4 cents at $3.56 per bushel after hitting a contract low at $3.54. July soyabeans were up 3 cents at $9.08-1/2 a bushel, rebounding after falling to $8.97-1/4, the lowest spot price on a continuous chart since March 2016.
CBOT July wheat was down 10 cents at $4.89-1/2 a bushel while K.C. July wheat was down 18-3/4 cents at $5.01. Corn fell after crop-friendly rains crossed the Midwest over the weekend and forecasts called for more showers this week, offsetting concerns about hot temperatures in the region.
Ahead of the US Department of Agriculture's weekly crop progress report later on Monday, analysts surveyed by Reuters expected the government to lower slightly its crop ratings for corn and leave soyabean ratings unchanged. But condition ratings for both crops are at historically high levels for this time of year. Soyabeans bounced after dropping sharply over the last two weeks on crop weather and trade tensions between the United States and China, the world's biggest soya importer.
US President Donald Trump last week announced hefty tariffs on $50 billion in Chinese imports, and China hit back, announcing 25 percent tariffs on 659 US goods, including soyabeans, starting July 6. Wheat tumbled on technical selling and harvest pressure as combines rolled across the southern Plains.
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