CHICAGO, June 14 (Reuters) - U.S. corn futures fell by
almost 4% on Monday on forecasts for improving crop weather in
the Midwest, including cooler temperatures and beneficial rains
late this week, analysts said.
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
settled down 25-1/4 cents, or 3.7%, at $6.59-1/4 per bushel,
while new-crop December corn ended down 28-1/2 cents at
CBOT July soybeans ended down 36-1/4 cents, or 2.4%,
at $14.72-1/4 a bushel while July wheat fell 6-1/4 cents
to finish at $6.74-1/2 a bushel.
"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.
However, even with improved weather forecasts, concerns
persist about dryness in portions of the Corn Belt. After the
CBOT close, the U.S. Department of Agriculture lowered its
ratings of the U.S. corn and soybean crops more than most
In a weekly progress report, the USDA rated 68% of the U.S.
corn crop as good to excellent, down 4 percentage points from
the previous week, and 62% of the soy crop as good to excellent,
down 5 percentage points. Analysts on average had expected a
ratings decline of only 3 points for corn and 2 points for
"Early planted crops are starting to show moisture stress,"
Iowa Secretary of Agriculture Mike Naig said in a statement.
Iowa is the top U.S. corn state and the No. 2 producer of
Traders continued to digest a Reuters report on Friday that
said the United States could scale down biofuel blending in
fossil fuels, possibly cutting demand for corn-based ethanol and
CBOT July soyoil settled down fell 1.5% and Malaysian
palm oil fell nearly 8% on Monday.
(Reporting by Julie Ingwersen; Additional reporting by Michael
Hogan in Hamburg and Naveen Thukral in Singapore
Editing by David Goodman and Lisa Shumaker)