* Forecasts of cool, wet weather add pressure on corn,
* U.S. plan to provide relief to refiners on biofuel
SINGAPORE, June 17 (Reuters) - Chicago corn futures slid
more than 1% on Thursday and soybeans dropped to a two-month
low, as forecasts of improved weather in parts of the United
States weighed on prices.
Wheat edged higher for a second consecutive session.
"Weather forecasters continue to look for rain and cooler
temperatures this weekend, while dry and hot weather prevails in
the north west of the U.S. Midwest until then," said Tobin
Gorey, director of agricultural strategy at Commonwealth Bank of
"That weather pattern is the market's fixation for now."
The most-active corn contract on the Chicago Board of Trade
(CBOT) was down 1.2% to $6.65 a bushel, having closed up
0.8% in the previous session.
Soybeans were down 0.3% to $13.43-3/4 a bushel by 0259
GMT, near the session low of $14.35-3/4 a bushel - the weakest
since April 20. Wheat futures rose 0.2% to $6.63-3/4 a
Forecasts for improving weather in the U.S. Midwest crop
belt weighed on corn and soybean futures, despite a drop in
condition ratings for both crops.
Soybeans have been under pressure recently following news
the U.S. Environmental Protection Agency is considering ways to
provide relief to U.S. oil refiners from mandates requiring the
blending of biofuels including soy-based biodiesel.
A stronger dollar, which makes the greenback-priced
commodities expensive for buyers holding other currencies, also
weighed on prices.
The dollar rose to its highest level in almost two months
versus major peers after the Federal Reserve brought forward its
projections for the first post-pandemic interest rate hikes into
2023, citing an improved health situation and dropping a
long-standing reference that the crisis was weighing on the
Wheat exports from Russia, Ukraine and Kazakhstan will rise
in 2021/22, a Reuters poll showed, driven by high crops and
stockpiles as well as increased global demand.
The group, which exports its wheat mainly via the Black Sea
to customers in Africa and the Middle East, faces tougher
competition as prospects for this year's crop are also good in
the European Union.
Commodity funds were net sellers of CBOT soyoil, soybean and
corn futures contracts on Wednesday and net buyers of soymeal
and wheat futures, traders said.
(Reporting by Naveen Thukral; Editing by Subhranshu Sahu)