Chicago soyabean futures fell more than 1% on Monday in the market's steepest drop in 1-1/2 weeks, as livestock processing plant closures that impact feed supply weighed on soyameal prices.
Corn also sagged despite optimistic news that OPEC might curb oil production, after a deal was signed over the weekend. Wheat rose in early trading on concerns of frost damage to parts of the US crop, but expectations of a larger US and global stockpiles drove the market lower.
The most-active soyabean contract on the Chicago Board of Trade (CBOT) fell 10-1/2 cents to $8.53 a bushel by 11:32 a.m. CDT (1632 GMT). Corn fell 1-1/4 cents to $3.30-1/2 a bushel and wheat dropped 3/4 cent to $5.55-3/4 a bushel.
Corn futures continue to be hammered by diminished demand for ethanol fuel, which makes up nearly 40% of US corn consumption. The wheat market continues to face headwinds from expectations of a larger US harvest than analysts projected, but was helped by cold weather in the southern US Plains, which could damage emerging crops.
The US Department of Agriculture (USDA) is due to update its weekly crop conditions assessment after the close of trading on Monday, including wheat crop condition ratings as of Sunday.
Analysts surveyed by Reuters expect the US winter wheat crop to be rated 62% good to excellent in the weekly report, unchanged from a week earlier.
Private exporters reported the sale of 120,000 tonnes of hard red winter wheat to unknown destinations, the USDA said on Monday. That followed a 165,000-tonne sale to China on Friday.
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