Corn, soy ease on U.S. planting outlook; wheat falls on harvest prospects
CHICAGO - Chicago Board of Trade corn and soybean futures weakened on Monday on forecasts for dry weather across the U.S. Midwest that would allow farmers to resume their planting tasks after storms drove them from fields for much of the past wee...
CHICAGO - Chicago Board of Trade corn and soybean futures weakened on Monday on forecasts for dry weather across the U.S. Midwest that would allow farmers to resume their planting tasks after storms drove them from fields for much of the past week, traders said.
"The balance of the week is favorably dry for the Midwest/South and will allow for substantial planting progress, particularly given the slightly lesser weekend rain totals compared to expectations," Commodity Weather Group said in a note to clients.
Wheat futures also fell, led lower by K.C. hard red winter wheat contracts that were pressured by good conditions for growth across the U.S. Plains.
A round of profit taking added pressure to corn, soybeans and wheat after all three commodities notched gains during April.
At 9:43 a.m. CST (1443 GMT), CBOT July corn was down 3-1/2 cents at $3.88-1/4 a bushel. CBOT July soybeans were 2-1/4 cents lower at $10.27-1/2 a bushel.
"The U.S. Midwest had an expected wet weekend. Forecasters say corn planting conditions in the U.S. will start to improve later this week," said Tobin Gorey, director of agricultural strategy, Commonwealth Bank of Australia.
Grain markets will get an update on crop conditions from the U.S. Department of Agriculture's (USDA) weekly crop progress report due after the U.S. market close on Monday.
Analysts were expecting the report to show that farmers remain ahead of their typical pace despite the weather-enforced slowdown last week.
A dry spell was also forecast this week in France, the European Union's biggest corn grower, which could help planting accelerate after rain-delayed field work so far this spring.
CBOT July soft red winter wheat futures were 5 cents lower at $4.83-1/2 a bushel while K.C. hard red winter wheat was down 9 cents at $4.69-1/2 a bushel.
Traders were waiting for crop reports from this week's Wheat Quality Council's tour of Kansas, the largest U.S. hard red winter wheat producing state. The tour kicks off on Tuesday and analysts were expecting that scouts would find plentiful soil moisture and a crop with big harvest potential.