U.S. grains: Corn, soybeans extend losses as Midwest weather looks crop-friendly

Chicago | Reuters—Chicago Board of Trade corn futures extended session losses on Tuesday, weighed down by forecasts for crop-friendly rain in U.S. grain belts this week.

Soybean futures closed modestly lower after a choppy session, turning higher at times on support from a decline in U.S. crop ratings and news that U.S. and Chinese trade officials will meet to discuss an August 12 deadline for a deal to avert sharply higher tariffs.

Wheat futures firmed, despite expectations of plentiful global supplies, after Russia trimmed its crop harvest and export forecasts, market analysts said. The first new-crop wheat from Russia, the world’s biggest wheat exporter, has arrived on the market, traders and analysts said.

The most active CBOT wheat contract Wv1 ended the day 7-1/4 cents higher at $5.49-1/2 per bushel. The most active corn contract Cv1 settled down 4-1/4 cents at $4.18 a bushel, while soybeans Sv1 ended 1/2-cent lower at $10.25-1/2 a bushel.

Traders had been concerned that high temperatures in the U.S. Midwest would damage yields, but after a brief burst of heat mid-week, showers are expected to limit crop stress, said Commodity Weather Group.

This summer’s spate of hot weather and frequent rains created a greenhouse-like effect, boosting corn prospects. The U.S. Department of Agriculture on Monday rated 74% of the U.S. corn crop, the highest assessment for corn at this time of year since 2016.

“This is mostly a weather market we’re seeing,” said Jim Gerlach, president of U.S. brokerage A/C Trading. Gerlach added that traders may also be starting to factor in whether the pending August 1 tariff deadline for most U.S. trading partners will actually happen.

U.S. Treasury Secretary Scott Bessent said on Tuesday that he will meet his Chinese counterpart next week in Stockholm and discuss what is likely to be an extension of an August 12 deadline for a deal to avert sharply higher tariffs.

The corn market also continued to feel some pressure from Monday’s report from agribusiness consultancy AgRural, which increased its estimate for Brazil’s total 2024/25 corn production to 136.3 million tons, up from 130.6 million tons, market analysts said.

—Additional reporting by Peter Hobson and Sybille de La Hamaide