Corn drops to 3-week low on improved US crop rating

PARIS/SINGAPORE: Chicago corn fell for a second straight session on Tuesday to its lowest in nearly three weeks after US Department of Agriculture (USDA) data unexpectedly showed an improvement in US corn crop conditions.

Wheat dropped, falling for a fifth session out of the last six, as improving prospects for northern hemisphere harvests again weighed on prices.

Soybeans also eased, despite a decline in the USDA's weekly crop rating for the oilseed, as the weather outlook in the US Midwest remained broadly favourable for soy and corn crops after a recent dry spell.

The most-active corn contract on the Chicago Board of Trade was down 1.0% at $3.25 a bushel at 1124 GMT, after earlier dropping to its weakest since June 3.

The USDA rated 72% of the US corn crop in good to excellent condition in its weekly crop progress report, up 1 percentage point from a week ago.

Analysts surveyed by Reuters on average had expected corn ratings to decline by 1 percentage point.

"The focus is on supplies as US weather is favourable for both corn and soybeans," said one Singapore-based trader.

CBOT soybeans fell 0.3% to $8.73-1/2 a bushel.

Soybean traders were assessing developments in China.

US President Donald Trump reassured investors by saying a trade agreement with China was intact, after his trade adviser spooked markets by suggesting the pact was "over".

China's soybean buyers, meanwhile, are asking exporters to sign a letter guaranteeing cargoes are not contaminated with the novel coronavirus, an official with the United States Soybean Export Council said.

CBOT wheat shed 0.5% to $4.87 a bushel.

The USDA estimated the condition of US winter wheat improved last week, while harvesting of the crop progressed.

In Russia, the world's biggest wheat exporter, latest analyst forecasts underscored prospects for a large harvest.