Corn retreats from month high as crop conditions become clearer

CHICAGO: US corn futures ended lower on Tuesday after hitting a 5-week high on Monday as higher yields estimated on an annual Midwest crop tour tempered concern about storm damage across the Corn Belt.

Soybean futures declined but held near Monday's multi-month high as concerns over dry Midwest weather offset better-than-expected crop conditions. Wheat tracked corn lower.

The most active corn contract on the Chicago Board of Trade ended down 3 cents at $3.41-3/4 a bushel.

CBOT soybeans finished 1-1/2 cents lower at $9.13-3/4 a bushel, while wheat fell 8-3/4 cents to $5.17-1/2 a bushel.

Strong corn yield prospects found in Ohio and South Dakota by the Pro Farmer Midwest Crop Tour on Monday pressured markets.

Scouts also found above-average crop potential in parts of Nebraska and Indiana on Tuesday, but noted some soybean fields may need more rain to hit peak yields. Results for those states will be released later on Tuesday.

The US Department of Agriculture's weekly crop progress report on Monday also indicated better-than-expected corn conditions.

US President Donald Trump visited Iowa on Tuesday to review the damage to the state from an Aug. 10 storm, and the state's agriculture secretary, Mike Naig, told a briefing in Cedar Rapids "There are millions of acres of corn that just won't flat out be able to be harvested."

Early estimates indicate the storm damaged more than 57 million bushels of grain storage in Iowa ahead of the autumn harvest, the state's agriculture department said.

Hot, dry forecasts continue to threaten soybeans during key development, but crop tour assessments show strong yield potential, said Mike Zuzolo, president of Global Commodity Analytics.

"I think it's going to keep the market pinned into a range," he said. "Expectation is that we're going to continue to see drought worsen."