CHICAGO: US corn futures fell more than 2% on Monday, nearing a two-week low as Midwest weather forecasts turned milder for the crop's key growth phase this month, raising the potential for a large harvest, analysts said.
The rosy weather outlook also pushed soyabean futures lower, and wheat followed the weak trend.
"Risk premium is coming out of the market due to improved weather conditions ... and we have huge (old-crop) supplies we are lugging around," said Don Roose, president of Iowa-based US Commodities.
Most-active December corn futures on the Chicago Board of Trade settled down 8-1/4 cents at $3.36-1/2 per bushel after dipping to $3.34-3/4, the contract's lowest since June 30. Benchmark CBOT November soyabeans ended down 15-1/2 cents at $8.75-1/4 a bushel.
Weather forecasts looked cooler and wetter for the balance of July, when crops are pollinating in the heart of the Midwest. Corn and soya futures had climbed earlier this month as hot, dry conditions stressed crops in some areas.
After the CBOT close, the US Department of Agriculture rated 69% of the country's corn crop in good-to-excellent condition, down 2 percentage points from a week earlier. Analysts surveyed by Reuters on average had expected a smaller decline of 1 percentage point.
The USDA rated 68% of the soyabean crop as good to excellent, down from 71% last week.
Rising trade tensions with top global soya buyer China added to bearish sentiment, even after China booked 1.365 million tonnes of US corn last week, its second-largest single-day US corn purchase on record.
CBOT September wheat settled down 9-1/4 cents at $5.24-3/4 a bushel as traders continued to monitor Northern Hemisphere harvests.
Agriculture consultancy IKAR lowered its forecast for Russia's wheat crop to 76.5 million tonnes from 78 million previously. After the CBOT close, Egypt's General Authority for Supply Commodities set an international wheat purchase tender. Results were expected on Tuesday.
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