CHICAGO, June 14 (Reuters) - U.S. corn futures fell by about
4% on Monday on a mix of technical selling and forecasts for
improving weather in the Midwest as the crop approaches a key
Soybeans fell more than 2% and wheat followed the weaker
trend as the U.S. winter wheat harvest got under way.
Chicago Board of Trade (CBOT) July corn futures were
down 28 cents at $6.56-1/2 a bushel at 12:53 p.m. CDT (1753
GMT), with new-crop December corn down 29 cents at
CBOT July soybeans, meanwhile, lost 36-1/2 cents to
$14.72 a bushel and July wheat was down 6 cents at
$6.74-3/4 a bushel.
Corn posted the biggest declines on a percentage basis.
"The ags sold off with gusto overnight after weekend weather
models flipped cooler and wetter for many key crop production
areas of the United States," Arlan Suderman, StoneX chief
commodities economist, wrote in a note to clients.
Some analysts saw Monday's declines in grains as
follow-though selling after weak closes on Friday in CBOT corn
and soyoil futures. Commodity funds hold sizeable net
long positions in both commodities, leaving the markets
vulnerable to bouts of long liquidation.
Futures fell despite trade expectations that the U.S.
Department of Agriculture will flag a decline in U.S. crop
ratings in its weekly report due later on Monday, reflecting
stress from a hot spell last week.
Analysts surveyed by Reuters on average expected the USDA to
rate 69% of the U.S. corn crop in good to excellent condition,
down 3 percentage points from the previous week, and 65% of the
soybean crop as good to excellent, down 2 points.
Additional pressure stemmed from a Reuters report that said
the U.S. could scale down biofuel blending in fossil fuels,
possibly cutting demand for corn and soy-based blending
However, the market is awaiting confirmation and further
detail, given that environmental protection is a key element of
the Biden administration's strategy.
CBOT July soyoil fell 1.7% and Malaysian palm oil
fell nearly 8% on Monday.
(Additional reporting by Michael Hogan in Hamburg and Naveen
Thukral in Singapore
Editing by David Goodman)