Chicago corn, soy prices fall on weekend rains in US

LONDON: Chicago corn and soybean futures fell on Monday as US crops benefited from much-needed rains over the weekend while wheat prices also weakened.

The most-active corn futures on the Chicago Board Of Trade were down 1.95% at $6.42-1/2 a bushel by 1044 GMT.

"The weekend did see useful rainfall in the drier regions, and that rainfall will alleviate crop stress for a period," said Tobin Gorey, director of agricultural strategy, Commonwealth Bank of Australia.

"The return of higher temperatures later this week though tempers the good news."

About 41% of Iowa, the nation's top corn producer and No. 2 soybean state, was under severe drought last week, according to the weekly US drought monitor published last week.

Dealers noted corn prices were underpinned, however, by the strong pace of US exports to China with shipments running well above year-earlier levels.

"This stronger demand reflects an increase in animal feed demand, with the pig herd recovering following the African Swine Fever outbreak, as well as the need to replenish depleted stockpiles," ING said in a market note.

The most active soybean futures were down 1.8% to $12.89-1/2 a bushel.

The wet weather also weighed on soybean prices, analysts said, though strong Chinese demand capped losses.

Chinese state-owned importers bought at least eight cargo shipments of US soybeans on Friday, the country's largest US soybean purchases in 4-1/2 months, two US traders familiar with the deals said.

Dealers said the US exports would not be dispatched from the US Pacific Coast until October with customs data showing China has imported a lot of soybeans from Brazil recently.

China's May soybean imports from Brazil jumped 82% from the previous month, bolstered by the arrival of cargoes due to land earlier but delayed by rains, customs data showed on Sunday.

The most active wheat futures slid 1% to $6.59-1/4 a bushel.

An advancing US harvest was also pressing prices, analysts said.