Chicago | Reuters –– U.S. corn futures tumbled 2.4 per cent to a 21-month low on Wednesday, falling for a fifth session in a row as good weather for crop development raised expectations of a bountiful harvest in the fall.
Soybeans also fell on pressure from an outlook for good weather across broad swaths of the U.S. Midwest that was expected to shepherd crops through key phases of development.
“No doubt there were plenty of farmers here in the heart of the corn belt that were disappointed with last night’s forecasted rains once again,” Matt Zeller, director of market information at INTL FCStone, said in a note to clients. “However, the trade has no such concern on a national level.”
Wheat futures, facing plentiful global supplies and reports of good harvest yields in the U.S. Midwest and Plains, also declined.
Chicago Board of Trade November soybean futures dropped four cents at $10.73-1/4 a bushel, settling well above session lows as some bargain buyers stepped in (all figures US$).
CBOT December corn was off 9-3/4 cents at $3.48-1/4 a bushel, and CBOT September wheat was five cents lower at $4.28-1/2 a bushel.
The U.S. Department of Agriculture’s weekly conditions report on Tuesday showing strong ratings for corn, soybeans and wheat also contributed to the weakness in the commodities markets.
“The U.S. crop condition reports late on Tuesday showed that U.S. wheat, corn and soybeans are in overall positive condition and development is on track despite talk in the past couple of weeks about adverse dry U.S. weather,” said Frank Rijkers, agrifood economist at ABN Amro Bank.
The USDA report said 62 per cent of U.S. winter wheat was in good to excellent condition against 62 per cent a week ago and only 40 per cent a year ago.
For U.S. corn, 75 per cent was in good to excellent condition against 75 per cent last week and 69 per cent a year ago.
For soybeans, 70 per cent was in good to excellent condition, down from 72 per cent a week ago, but well up from 63 per cent a year ago.
— Mark Weinraub is a Reuters correspondent covering grain markets from Chicago. Additional reporting for Reuters by Colin Packham in Sydney and Michael Hogan in Hamburg.