Chicago | Reuters — U.S. soybean and corn futures fell on Monday as broad-based selling and pressure from losses in other markets overshadowed concerns about unfavourable crop weather, analysts said.
Global stocks and government bonds plunged and the dollar hit two-decade highs as red-hot U.S. inflation stoked worries about even more aggressive policy tightening.
At the Chicago Board of Trade, soybean futures extended a setback after nearing a record high last week.
“The dominant issue is the outside markets,” said Don Roose, president of broker U.S. Commodities in Iowa. “You’re seeing basically liquidation.”
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Most-active soybean futures tumbled 38 cents to end at $17.07-1/2 a bushel, while corn closed down four cents at $7.69-1/4 a bushel (all figures US$).
Heat expected in the U.S. Midwest fueled some early worries among traders about unfavourable conditions for corn and soybeans. But some analysts said corn could benefit from a hot spell after cool, wet weather delayed springtime plantings.
The U.S. Department of Agriculture, in a weekly report, rated 72 per cent of the corn crop as good to excellent, down one percentage point from a week ago. Analysts were expecting no change. USDA rated the soybean crop as 70 per cent good to excellent, matching analysts’ expectations.
“The market is going to continue to be very reactive to the weather forecasts and what the rain chances are, especially as the forecasts are calling for above normal temperatures for the next two weeks,” CHS Hedging said in a note.
Traders also monitored hot weather in wheat-growing areas of Western Europe and talks aimed at resuming Black Sea exports of Ukrainian grain disrupted by Russia’s invasion.
“The situation in Ukraine remains the focus of concern, to which we must now add the climatic situation in Western Europe,” consultancy Agritel said.
CBOT wheat settled 1/4 cent higher at $10.71 a bushel, while deferred contracts posted stronger gains.
— Reporting for Reuters by Tom Polansek in Chicago, Gus Trompiz in Paris and Naveen Thukral in Singapore.
