Soybeans, Corn, Wheat Drop Close to a 3-Month Low on Favorable Weather

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Soybeans, Corn, Wheat Drop Close to a 3-Month Low on Favorable Weather

US grain contracts plummeted more than 1% today, with corn and wheat plunging to nearly 12-week lows, as good crop weather and possibility of ease of tensions in major shipment market Ukraine triggered investor long liquidation, according to traders.

Analysts anticipated that US Agriculture Department would say in a report later on today that farmers already recovered lost time in sowing corn and soybean after a sluggish kickoff to the spring sowings season, Reuters reported.

Nearly 88% of corn was planted by May 25, a hike from 73% the previous week as soybean sowing ascended to 57%, up from 33%, a Bloomberg survey showed.

Bethesda, Maryland-based Commodity Weather Group LLC predicts that warm and wet weather for the coming two weeks will bolster crop growth.

“The tone of the markets has shifted to one looking for good crop production after earlier planting delays. We have an ideal mix of weather to get the crops off to a great start,” Ted Seifried of Chicago-based Zaner Group LLC told Bloomberg.

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Corn futures for July delivery went down 1.7% to trade at $4.6975 per bushel at the close as of 1:15 pm on the Chicago Board of Trade. The price had touched $4.6925 earlier, a low not seen since March 4 for a most-active contract. The after-harvest December-delivery contract plunged 2% to $4.6575, the lowest price since the 27th of February.

July-delivery soybean futures hit $14.8875 per bushel after losing 1.8%, the deepest plunge since May 1. The settlement rate hit an 11-month high of $15.3675, in part because of support from China demand, the world’s largest consumer.

Wheat futures for July settlement decreased 1.8% to $6.41 per bushel. The price hit $6.4025 earlier, the lowest settlement since March 11. The rally lost 11% in May, staying on course for the biggest tumble since September 11.

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To contact the reporter of this story; Jonathan Millet at john@forexminute.com