Chicago/Reuters – U.S. corn futures fell on Wednesday, pressured by good weather for crop development across the U.S. Midwest, traders said.
The benign conditions also weighed on wheat, which eased as the pace of harvest in eastern growing areas increased.
Soybean futures were mixed. The nearby contract firmed on support from strength in the cash market, where light farmer selling of soybeans caused processors to boost their bids. Deferred soybean contracts fell on improving crop conditions as fields in the eastern Midwest dried out.
“There is generally a favorable weather forecast and stable crop conditions holding yield potential a little higher than the market thought a few weeks ago, said Greg Grow, director of agribusiness at Archer Financial Services.
Corn around the Midwest was passing through its yield-determining pollination phase in near ideal conditions in many areas, with mild temperatures putting little stress on the crop.
“The lack of more notable heat will keep crop development favorable in all but far southwest sections of the belt,” forecaster Commodity Weather Group said in a note.
Chicago Board of Trade corn for September delivery ended down 3-3/4 cents at $4.02-3/4 a bushel, with the front-month contract hitting its lowest since June 30. Some short-covering and bargain buying pulled prices from their lows.
CBOT September soft red winter wheat was 8 cents lower at $5.16-3/4 a bushel, dropping through technical support at its 100-day moving average. The front-month contract, which has fallen for seven days in a row, hit its lowest since June 25.
“The good weather prospects in the United States grain belts are again dominating the wheat and corn markets today, continuing the recent price weakness,” said Frank Rijkers, agrifood economist at ABN AMRO Bank.
CBOT August soybean futures settled up 2 cents at $10.20-3/4 a bushel. New-crop November fell 9-1/4 cents to $9.95-1/2 a bushel.
– Mark Weinraub reports on grain markets for Reuters from Chicago. Additional reporting by Julie Ingwersen in Chicago, Naveen Thukral in Singapore and Sybille de La Hamaide in Paris.