NEW YORK: Chicago soybeans dropped on Monday to their lowest in two weeks while corn slid for a third consecutive session, as forecasts of cooler weather in parts of the US Midwest and slowing demand in top buyer China weighed on prices.
Wheat prices also fell.
Hot, dry weather in the US Midwest had raised concerns about the outlook for crops in the key growing region for both corn and soybeans.
“The prospect of better weather in August, as predicted by various weather models, is causing the US market to decline despite current dry conditions,” Agritel said in a note.
“The forecasts have yet to be confirmed in coming weeks, but are pushing some traders to sell off their positions or start taking profits,” the analyst added.
The most-active soybean contract on the Chicago Board Of Trade (CBOT) was down 0.5% at $13.45-1/2 a bushel, as of 11:23 a.m. EDT (1523 GMT), after setting a two-week low of $13.32.
China’s soybean imports are set to slow sharply in late 2021 from a record first-half tally, confounding expectations for sustained growth from the top global buyer and denting market sentiment just as US farmers look to sell their new crop.
CBOT corn lost 0.9% to $5.38 a bushel. It earlier fell to $5.32-1/4 a bushel, the lowest since July 13.
The US Department of Agriculture reported negative net corn export sales for the week ended July 15, driven by the cancellation of some sales to China.
“We’re seeing concerns about export demand and revised expectations for exports to China,” said Rich Nelson, chief strategist at Allendale, Inc.
Dealers said wheat prices also continued to fall with global supplies seen remaining ample despite concerns about crops in some areas.
CBOT wheat fell 1.1% to $6.76-1/4 a bushel, easing on lackluster export demand for US supplies and expanding harvest in the Black Sea region.
Russia’s southern region of Krasnodar, one of the largest wheat producing and exporting areas of the country, has harvested a record grain crop of 12.4 million tonnes, including 10.5 million tonnes of winter wheat, its governor said on social media.