CHICAGO, June 17 (Reuters) - U.S. corn and soybean futures
fell sharply on Thursday, pressured by outlooks for rain and
cooler temperatures in the Midwest crop belt, as well as
spillover from broad-based selling in the commodities sector,
Wheat followed the weaker trend, with seasonal pressure
noted from the U.S. winter wheat harvest.
Chicago Board of Trade July corn settled down its
40-cent daily limit at $6.33 per bushel. CBOT July soybeans
ended down 118-3/4 cents at $13.29-3/4 per bushel while
new-crop November soybeans fell 90-1/2 cents to
$12.52-3/4, dropping below psychological support at the $13 mark
for the first time since April.
CBOT July wheat finished down 23-3/4 cents at $6.39
per bushel after dipping to $6.37-1/4, the contract's lowest
since April 14.
Grains followed declines in crude oil and gold
as the U.S. dollar rose sharply after the U.S. Federal
Reserve signaled it might raise interest rates at a much faster
pace than assumed.
Commodity funds hold a net long position in CBOT corn,
soybean and soyoil futures, leaving the markets prone to bouts
of long liquidation.
"All these outside markets - the funds (are) just exiting.
The charts, certainly in beans, meal and oil, look ugly," said
Dan Cekander, president of DC Analysis.
CBOT soybean, soyoil, soymeal and corn futures will trade
with expanded daily limits for Friday's session, the exchange
On the weather front, traders expect showers to bring some
relief to dry areas of the U.S. Corn Belt over the next two
weeks, improving production prospects.
"When the market seems rain in front of it, it extracts
premium accordingly," said Dan Basse, president of AgResource Co
However, severe moisture deficits suggest crop yields in key
production areas remain at risk. Thursday's weekly U.S. Drought
Monitor, prepared by a consortium of climatologists, showed
severe drought across 41% of Iowa, the top U.S. corn producer
and the No. 2 soy grower.
CBOT July soyoil fell by its expanded 5.5-cent daily
limit to 56.57 cents per pound, nearly 9% on the day, as global
vegetable oil markets, including Euronext rapeseed and
Malaysian palm oil futures, retreated from all-time
highs set in recent months.
Soyoil futures have faced pressure 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.
(Additional reporting by Naveen Thukral in Singapore and
Sybille de La Hamaide in Paris; Editing by Marguerita Choy and