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Good weather sparks selling in CBOT corn, soybeans

CHICAGO - U.S. corn and soybean futures fell on Wednesday, with good weather for crop development again pressuring prices as expectations built for a bountiful harvest in the fall, traders said.

Karolyn Zurn holds soybean seed
Agweek file photo.

CHICAGO - U.S. corn and soybean futures fell on Wednesday, with good weather for crop development again pressuring prices as expectations built for a bountiful harvest in the fall, traders said.

Wheat futures, facing plentiful global supplies and reports of good harvest yields in the U.S. Midwest and Plains, also declined.

Rain across key growing areas of the Midwest keyed the sell-off in corn and soybeans. Soybeans shed 2.6 percent and hit their lowest since May 10 while corn fell 3 percent.

The outlook for more rain during the next two weeks outweighed concerns about dryness in some areas.

"No doubt there were plenty of farmers here in the heart of the corn belt that were disappointed with last night's forecasted rains once again," Matt Zeller, director of market information at INTL FCStone said in a note to clients. "However the trade has no such concern on a national level."

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At 10:31 a.m. CDT (1531 GMT), Chicago Board of Trade November soybean futures were down 28-3/4 cents at $10.48-1/2 a bushel. CBOT December corn was off 10-1/2 cents at $3.47-1/2 a bushel and CBOT September wheat was 11-1/4 cents lower at $4.22-1/4 a bushel.

The U.S. Agriculture Department's weekly conditions report on Tuesday showing strong ratings for corn, soybeans and wheat further contributed to the weakness in the commodities markets.

"The U.S. crop condition reports late on Tuesday showed that U.S. wheat, corn and soybeans are in overall positive condition and development is on track despite talk in the past couple of weeks about adverse dry U.S. weather," said Frank Rijkers, agrifood economist at ABN Amro Bank.

The USDA report said 62 percent of U.S. winter wheat was in good to excellent condition against 62 percent a week ago and only 40 percent a year ago.

For U.S. corn, 75 percent was in good to excellent condition against 75 percent last week and 69 percent a year ago.

For soybeans, 70 percent was in good to excellent condition, down from 72 percent a week ago but well up from 63 percent a year ago.

Related Topics: SOYBEANSCROPSCORN
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