CHICAGO: US corn and soyabean futures fell on Monday as rains boosted recently planted crops across the US Midwest and as traders weighed future export demand following a flurry of corn purchases by China last week.
Wheat futures also fell, sinking to the lowest level in more than a month as prospects for a bumper US winter crop and rising global competition in export markets weighed on prices.
“People are taking risk premium out of the market. We were worried about dry conditions in Iowa, Wisconsin and part of the Dakotas. All that changed with the rain, at least for now,” said Don Roose, president of US Commodities.
Beijing last week announced stepped-up measures to restrain soaring commodities prices that threaten to undermine China’s economic recovery.
Chicago Board of Trade July corn was down 5 cents at $6.54-1/2 per bushel by 12:54 p.m. CDT (1754 GMT), while July soyabeans were down 4-1/2 cents at $15.21-3/4 a bushel.
US farmers are nearly finished planting corn and soyabeans, and early crop condition ratings have been favourable.
Analysts polled by Reuters expect the US Department of Agriculture (USDA) to report 91% of corn has been planted as of Sunday along with 80% of the soya crop. The USDA is due to release its weekly crop progress and conditions report after the close.
Wheat futures retreated after crop scouts on an annual tour last week projected record-high yields in Kansas, the top winter wheat state.
Rising export competition from rival suppliers in the northern hemisphere added pressure.
July soft red winter wheat fell 11-1/4 cents to $6.63 a bushel, the lowest for a most-active contract since April 20. July hard red winter wheat dipped 8-3/4 cents to $6.15-1/4 a bushel.