Corn resumes slide as strong US crop prospects weigh
The U.S. Department of Agriculture (USDA) said on Monday that 74% of the U.S. corn crop and 70% of the soybean crop were in good-or-excellent condition - the highest July ratings since 2016. Forecasts continued to point to a favourable mix of moderate heat and regular rain in the week ahead for the U.S. Midwest. "U.S. weather looks great, seasonals are broadly bearish," Peak Trading Research said in a note.
"Markets have shaken off Trump's new tariff volleys and are now nervously anticipating today's CPI print," it said, referring to the Consumer Price Index. The most-active corn contract on the Chicago Board of Trade (CBOT) was down 0.7% at $4.15-1/4 a bushel by 1039 GMT.
The December delivery contract hit a low of $4.07-1/2 on Monday. CBOT soybeans edged down 0.4% to $10.03-1/2 a bushel after touching $9.98-1/4 on Monday, their lowest level since April 9. CBOT wheat eased 0.5% to $5.39 a bushel. Corn had regained some ground on Monday and earlier on Tuesday, with analysts seeing the market prone to bounces at current low levels.
"We remain fundamentally constructive on CBOT corn and see value for consumers at current levels," analysts at JPMorgan said, calling the corn market oversold. China, the world's biggest soybean buyer, imported record volumes of soy in June, a Reuters calculation of customs data showed, driven by a surge in shipments from top supplier Brazil.
The National Oilseed Processors Association is expected to say the U.S. soybean crush dropped in June to a four-month low, analysts said, though it would still be the largest June crush on record due to expanded processing capacity. The wheat market is awaiting the outcome of an import tender being held by Algeria for a potential demand boost amid the arrival of large crops across the northern hemisphere.
Prices at 1039 GMT Last Change Pct Move CBOT wheat 539.00 -2.50 -0.46 CBOT corn 415.25 -2.75 -0.66 CBOT soy 1003.50 -3.50 -0.35 Paris wheat 198.00 0.75 0.38 Paris maize 206.75 0.25 0.12 Paris rapeseed 469.00 3.25 0.70 WTI crude oil 66.52 -0.46 -0.69 Euro/dlr 1.17 0.00 0.11 Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per metric ton.
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