|22 July, 2019

Corn prices down 1.6% on favourable U.S. weather, wheat eases

The most-active corn contract on the Chicago Board Of Trade was down 1.6% at $4.28-3/4 a bushel

Corn is seen at a farmers' cooperative in Maennolsheim, near Strasbourg, France, September 28, 2018.

Corn is seen at a farmers' cooperative in Maennolsheim, near Strasbourg, France, September 28, 2018.

REUTERS/Vincent Kessler

SINGAPORE  - Chicago corn futures slid 1.6% on Monday, falling for two out three sessions, as forecasts of cooler weather across much of the U.S. Midwest eased fears about potential yield losses.

Wheat fell almost 1%, weighed down by plentiful world supplies, while soybeans gave up 0.7%.

The most-active corn contract on the Chicago Board Of Trade was down 1.6% at $4.28-3/4 a bushel by 0338 GMT, having gained 1.4% in the previous session.

Wheat was down 0.9% at $4.98 a bushel, having closed up 1.8% on Friday. Soybeans lost 0.7% to $9.13 a bushel, after having firmed 2.3% in the last session.

"The size of the U.S. corn crop remains 'in play' so the market is unlikely to truly settle," said Tobin Gorey, director of agricultural strategy, Commonwealth Bank of Australia.

"The U.S. Midwest has enough areas that might quickly develop crop issues to keep the market on its toes."

The market is digesting the impact of hot weather across the United States.

The hot and dry weather after a rain-soaked spring stokes concern that U.S. corn yields will be smaller-than-expected, though recent adverse weather expected to ease this week.

Speculators were thought to have established their most bullish Chicago corn stance in more than three years earlier this month, but then the weather outlooks quickly and unexpectedly improved for the U.S. crop, Karen Braun, a market analyst for Reuters wrote in a column.

"Selling early last week offset the prior buying, and the bearish mood continued through most of the week."

Large speculators raised their net long position in CBOT corn futures in the week to July 16, regulatory data released on Friday showed.

The Commodity Futures Trading Commission's weekly commitments of traders report also showed that non-commercial traders, a category that includes hedge funds, increased their net short position in CBOT wheat and trimmed their net short position in soybeans.

The wheat market is facing pressure as rapidly advancing harvest across the northern hemisphere boosts global supplies.

The European Union is set for a larger wheat harvest this summer as a heatwave in late June which wilted some crops had a less severe impact than initially feared, traders and industry officials said on Friday.   

(Reporting by Naveen Thukral; editing by Uttaresh.V)

© Reuters News 2019

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