Corn near five-week low, soybeans fall on US rains

SINGAPORE: Chicago corn lost more ground on Wednesday, while soybeans slid for a second session as forecasts of rains in some of the parched growing regions in the United States weighed on prices.

Wheat dropped to a one-week low on easing worries about Russian supplies.

The most-active corn contract on the Chicago Board of Trade (CBOT) fell 0.3% to $5.59-1/4 a bushel, as of 0007 GMT, not far from last session’s lowest since May 22 at $5.55 a bushel.

Soybeans fell 0.2% to $12.91-3/4 a bushel and wheat gave up 0.7% to $6.94-1/4 a bushel, after dropping earlier in the session to $6.90-1/4 a bushel, the weakest since June 20.

Forecasts for rain in the grain belt later this week and next week tempered concerns about dry weather that has stressed crops this month.

The condition of U.S. corn and soybean crops has deteriorated to the worst in decades, U.S. Department of Agriculture data (USDA) showed on Monday.

The USDA rated 50% of the U.S. corn crop and 51% of the soybean crop as good to excellent, down from 55% and 54%, respectively, last week. The ratings were the lowest for this time of year since 1988, a year of historic drought.

As weather outlooks lifted optimism about supplies, questions about demand for U.S. grains lingered, given stiff global competition for export business.

In the wheat market, the focus turned back towards competitive prices in Russia after jitters caused by the weekend mutiny by the Wagner militia fuelled a rally on Monday.

The European Union’s crop monitoring service MARS on Monday forecast Russia’s wheat production this year at 86.7 million metric tons, underlining expectations for an above-average crop.

However, Ukraine’s grain harvest is likely to fall to 42.5 million metric tons in 2023 from around 53 million metric tons in 2022 due to a smaller sowing area, the Ukrainian Agribusiness Club business association said on Tuesday.

Commodity funds were net sellers of CBOT corn, soybean, wheat and soymeal futures contracts on Tuesday, and net buyers of soyoil futures, traders said.