CHICAGO: US grain and soy futures slumped on Thursday as poor export demand for American corn and favorable rains in Argentine crop areas pressured prices, analysts said.

Traders were disappointed as the US Department of Agriculture (USDA) reported weekly US corn export sales of 264,000 tonnes in the week ended Oct. 27. That was below the low end of analysts’ estimates that ranged from 350,000 to 1.075 million tonnes.

“The export sales on corn continue to be anemic,” said Don Roose, president of Iowa-based brokerage US Commodities. “This market is all about the demand.” The US faces competition from South America for export sales to global buyers like China. Rains in Argentina have reduced moisture shortages in the farm belt, though conditions look drier next week, Commodity Weather Group said.

The most-active corn contract on the Chicago Board of Trade (CBOT) was down 4-1/2 cents at $6.80-1/2 a bushel by 11:20 a.m. CDT (1620 GMT). Wheat was down 4 cents at $8.36-1/2 a bushel, while soybeans slipped 3 cents to $13.78-3/4 a bushel.

Soybeans pulled back after rising to their highest price in nearly two weeks, while soyaoil retreated from a four-month high. Soyaoil was overbought following recent rallies, and its losses weighed on soybeans, Roose said.

The USDA said weekly US soybean export sales totaled 1.026 million tonnes, in line with analysts’ forecasts for 800,000 to 1.850 million. Weekly export sales of US wheat were 533,200 tonnes, above the high end of trade expectations that ranged from 100,000 to 500,000 tonnes.

Traders continue to monitor talks to extend an export corridor for Ukrainian grain on the Black Sea, following Russia’s invasion.