Chicago / Reuters – U.S. corn and soybean futures fell more than 3 per cent on Tuesday, pressured by historically high crop ratings and forecasts for moderating temperatures next week, analysts said.
Wheat also declined, following the weak trend. At the Chicago Board of Trade as of 12:27 p.m. CDT (1727 GMT), December corn was down 13 cents at $3.50-1/4 a bushel.
New-crop November soybeans were down 36 cents at $10.30-1/4 per bushel after hitting a one-week low at $10.23.
September wheat was down 11-3/4 cents at $4.17-3/4 a bushel. Blazing heat is expected in the U.S. Corn Belt this week, with temperatures potentially surpassing 100 degrees Fahrenheit (38 Celsius) in the southwest quarter of the region, the Commodity Weather Group said.
However, rains in recent days may help blunt the impact of the hot spell, and more normal readings are expected next week.
Meanwhile, U.S. crops appear to be in great shape. The U.S. Department of Agriculture late Monday rated 76 per cent of the corn and 71 per cent of the soybean crop as good to excellent, unchanged from the previous week and some of the highest ratings for mid-July in the last 20 years.
The government also said that crops were advancing quickly, with 56 per cent of the corn in the silking stage, compared to the five-year average of 46 per cent.
“Not only are both crops rated high, but crop maturity is well ahead of normal, shortening the time remaining for weather to have a significant negative impact on the crop,” Dan Cekander, president of DC Analysis, said in a note to clients.
CBOT September wheat dipped to a two-week low at $4.16-1/4, pressured by the sell-off in corn and soybeans.
The wheat market has also struggled with bearish fundamentals, including the USDA’s projection for world wheat stocks to reach an all-time high by the end of the 2016/17 marketing year.