U.S. grains: Corn futures hit two-week low; soy slides, wheat steadies

Chicago | Reuters—U.S. corn futures hit a two-week low on Monday and soybeans also fell as market players continued to brace for large crops and forecasts called for milder, non-threatening weather in the Midwest production belt.

U.S. wheat futures pared losses and eked out a higher close, gaining against corn and soybeans on inter-market spreading.

On the Chicago Board of Trade, benchmark December corn futures CZ25 settled down 5 cents at $4.14 per bushel after dipping to $4.12-3/4, the contract’s lowest level since July 14.

New-crop CBOT November soybeans SX25 ended down 9-1/2 cents at $10.11-1/2 a bushel while CBOT September wheat WU25 settled up 1/4 cent at $5.38-1/2 a bushel.

Much of the U.S. Corn Belt has received timely rains in recent weeks but warm temperatures, particularly at night, have raised concerns about potential crop stress. Forecasts called for cooler weather by midweek, pressuring corn and soybean futures.

“A week ago, there was talk of (corn) pollination issues because it was so hot and steamy … but that has fallen on deaf ears for now,” said Tom Fritz, a partner with EFG Group in Chicago. “There is really no threatening weather out there.”

After the close of the CBOT, the U.S. Department of Agriculture rated 73 per cent of the U.S. corn crop in good to excellent condition, down from 74 per cent a week earlier but still the highest rating for this time of year since 2016.

Weekly soybean ratings improved, surprising analysts who expected a decline. The USDA rated 70 per cent of the soybean crop as good to excellent, up from 68 per cent last week.

Additional market pressure stemmed from weekend news that Argentina’s government announced a reduction in export taxes on agricultural goods including soybeans and corn. Argentina is the world’s No. 3 corn exporter and the largest supplier of soymeal and soyoil.

On tariffs, the United States and European Union struck a framework trade agreement on Sunday, imposing a 15 per cent import tariff on most EU goods and averting a bigger trade war between the two allies that account for almost a third of global trade.

Meanwhile, U.S. and Chinese economic officials met in Stockholm on Monday for talks aimed at resolving disputes at the center of a trade war between the world’s top two economies, seeking to extend a truce by three months. The discussions are expected to resume on Tuesday.

—Additional reporting by Michael Hogan in Hamburg and Ella Cao and Lewis Jackson in Beijing