CHICAGO: US corn futures fell more than 2% on Tuesday and soybeans also declined on optimism for sizable US crops and some forecasts for rain next week, despite pockets of stress from hot and dry conditions, traders said.
Wheat futures pared gains and turned lower at times after Egypt’s state grains buyer cancelled an international wheat purchase tender that had drawn offers of US wheat.
As of 1:08 p.m. CDT (1808 GMT), Chicago Board of Trade December corn was down 16 cents at $5.94-3/4 per bushel, poised to snap a four-session climb. CBOT November soybeans were down 22 cents at $13.58-1/4 a bushel. CBOT September wheat was up 2 cents at $8.14-3/4 a bushel, easing after a climb to $8.22-1/4.
Corn and soybeans were pressured by a weekly report showing stabilizing US crop conditions. The US Department of Agriculture (USDA) late on Monday rated 64% of the US corn crop in good-to-excellent condition, unchanged from the previous week, while analysts surveyed by Reuters on average had expected a decline of 1 percentage point.
For soybeans, the USDA rated 61% of the crop as good-to-excellent, down from 62% in the previous week, while analysts on average had expected no change.
“A second straight week of steady national corn condition ratings is giving the bears more hope that the current crop can meet or exceed USDA expectations, despite the continuance of a hot and dry summer,” Arlan Suderman, chief commodities economist at StoneX, wrote in a client note.
Forecasts pointed to beneficial rains in portions of the Midwest crop belt for next week, which could bolster yield prospects.
Market pressure also stemmed from hopes that a deal will be found to export more grains out of Ukraine as Russian President Vladimir Putin met with his Turkish counterpart in Iran to discuss the matter.
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