Chicago | Reuters — Chicago Board of Trade corn futures dropped 2.8 per cent on Wednesday, pressured by a government report that showed the condition of the U.S. crop was better than expected, traders said.
Wheat futures were mixed, with contracts that track U.S. winter wheat falling while spring wheat rallied to a four-year high on concerns about parched soils in the northern U.S. Plains.
“Like the other spring grains, spring wheat is getting stressed by the dryness, and is about to go under the blowtorch,” Charlie Sernatinger, global head of grain futures at ED+F Man Capital said in a client note.
Soybeans followed a run-up in soyoil that stemmed from concerns about global edible oil supplies.
CBOT July corn futures dropped 13-3/4 cents to $6.75 a bushel (all figures US$).
The U.S. Department of Agriculture on Tuesday rated 76 per cent of the U.S. corn crop as good-to-excellent.
“The ratings for the corn came in well above estimates,” said Ed Duggan senior risk management specialist at Top Third Ag Marketing. “That has kind of weighed on things.”
Traders also noted some profit-taking in the corn market following a rally of 4.9 per cent on Tuesday.
CBOT July soft red winter wheat was down six cents at $6.87-1/2 and K.C. hard red winter wheat was down 4-1/4 cents at $6.33-1/4. But MGEX spring wheat futures for July delivery were 11-1/2 cents higher at $7.83, peaking at the highest on a continuous basis for the front-month contract since July 11, 2017.
USDA said that good-to-excellent ratings for spring wheat fell to 43 per cent, from 45 a week earlier. A year ago, the crop was rated 80 per cent good to excellent.
“It is still extremely hot up in the Dakotas with limited rain,” said Greg Grow, director of agribusiness at Archer Financial Services.
CBOT July soybean futures were up 14 cents at $15.62-1/2.
— Mark Weinraub is a Reuters commodities correspondent in Chicago; additional reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore.Tagged cbot, closing markets, Corn, drought, futures, MGEX, Plains, soybean, Spring Wheat, USDA, Wheat