US corn contracts dropped on Monday after hitting a two-week high as optimism over a huge harvest in the US cancelled out worries that some regions had received excessive precipitation.
Traders said a slide in the corn market pulled down soybean contracts, while wheat futures dropped after top market Egypt ignored the US in a weekend tender.
Precipitation over the weekend paved way for a decline in prices of corn and soybeans as analysts anticipated that the crops would benefit from the wet weather. Some regions have received excessive rainfall, causing flooding and crop damage.
Some analysts anticipate that the US Department of Agriculture is likely to reduce its ratings for the health of soybeans and corn in a weekly report due on Monday.
Yet, specialist Sterling Smith of Chicago-based Citi is reported by Reuters as having said that wet weather has substantially improved the conditions of crops for the most part.
The per-bushel price of front-month corn dropped 2% or 9 cents to $4.44-1/4 as of 10:25 am CDT at the Chicago board of trade. Earlier, the future hit a session high of $4.57-3/4, a point last touched on June 6.
Soybeans for immediate delivery lost 0.5% or 7-1/4 cents to $14.08-1/2 per bushel to $14.08-1/2 per bushel, dropping from a session peak of $14.34-1/2.
A measure that beat expectations for manufacturing in China supported soybeans as figures reassured traders that demand of the oilseed from the world’s top consumer was still high.
“When you look at the entire domestic picture of the U.S., the rains that have fallen in most cases have been beneficial. The crop is rated very, very high,” James Bower of Lafayette, Indiana-based Bower Trading Inc told Bloomberg.
Egypt said it on Saturday it had ordered around 180,000 tonnes of wheat from Russia and Romania for delivery in August 1-10, with none being bought from the US.
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