US grain and soyabean futures slumped on Wednesday as forecasts for drier weather in the American Midwest fuelled hopes that farmers will be able to make progress planting corn after delays.
Large inventories of the crops added pressure on the markets, which remained nervous about trade tensions between the United States and China.
Traders focused on US weather conditions after weeks of rain put corn and soya plantings behind the average pace. Drier weather is likely to improve planting conditions in parts of the Midwest and Delta region next week, according to weather firm Maxar.
Traders think the drier weather will allow farmers to plant corn quickly enough to avoid major yield losses that can occur when the crop is planted late, said Brian Hoops, president of US broker Midwest Market Solutions.
July soyabean futures on the Chicago Board of Trade fell 1-1/2 cent to $8.29-1/4 a bushel by 12:35 p.m. CDT (1735 GMT). The market has recovered somewhat after setting a contract low of $8.16-3/4 a bushel on Monday.
CBOT July corn was down 1-1/4 cents at $3.65-1/4 a bushel. CBOT July wheat slid 2-1/4 cents to $4.37-1/4 a bushel.
Expectations for the US Department of Agriculture to estimate large crop inventories added pressure on the markets, traders said. The agency, in a report on Friday, will peg 2018-19 US corn ending stocks at 2.055 billion bushels, up from 2.035 billion last month, and soya stocks at 920 million bushels, up from 895 million in April, according to a Reuters poll of analysts. Wheat ending stocks are expected to swell to 1.097 billion bushels from 1.087 billion.
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