Chicago corn futures slid Monday on favorable US planting weather coupled with struggling crude oil prices that continue to pressure demand for corn-based ethanol fuel, analysts said.
Chicago Board of Trade (CBOT) wheat futures slipped to a one-month low as expected rain across Europe eased concerns about crop stress while competitive Saudi import tender prices tempered coronavirus supply tension concerns.
Soyabeans were choppy, turning lower at times as spillover pressure from corn futures offset support from anticipation of additional Chinese purchases of US soyabeans.
Fieldwork was the focus in the US Midwest, where farmers are seeding the 2020 corn and soyabean crops.
"We're just gonna be planting like crazy all week," said Mike Rowan, president of Crossroads Cooperative in Sidney, Nebraska.
Analysts expect the US Department of Agriculture to report US corn planting as 22% complete and soyabean planting as 8% complete in its weekly crop progress report due later Monday.
Meanwhile, worries about demand destruction for corn hung over the market. Archer Daniels Midland Co on Thursday said ethanol production at two corn dry mill facilities would be idled temporarily because of lower gasoline demand.
China signaled last week that it may buy 20 million tons of corn and 10 million tons of soyabeans to fill strategic reserves, though traders remain skeptical.
Most-active CBOT July corn fell 9-1/4 cents to $3.13-3/4 a bushel by 12:27 p.m. CDT (1727 GMT).
CBOT July wheat fell 7-1/2 cents to $5.23 a bushel. July soyabeans fell 1-3/4 cents to $8.37-3/4. Traders said prices paid by Saudi Arabia in purchasing 655,000 tonnes of wheat announced Monday pointed to strong competition for the forthcoming season.
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