Corn drops one percent

US corn futures fell 1 percent on Monday as a favourable weather forecast for much of the Midwest Corn Belt eased worries that stressful summer heat would drag down yields. Wheat futures also dropped as hot, dry weather this week should allow most farmers to complete the winter wheat harvest following scattered rain delays in recent weeks.
Nearby soyabean prices rallied on tight old-crop supplies and on stronger-than-expected demand from domestic processors. Gains in deferred contracts were limited by beneficial crop weather. "You couldn't really sit down and write out a better weather scenario for the corn crop right now for most areas. There are some areas in the west that are a bit of a concern, but nothing more than we normally deal with," said Shawn McCambridge, an analyst with Jefferies Bache.
A high-pressure ridge moved into the Midwest over the weekend and will remain in place until mid-week, blocking moisture from moving into the region, said John Dee, a meteorologist for Global Weather Monitoring. Showers were expected on Thursday and Friday in the far northern Midwest and late in the weekend in most of the Midwest. Additional rains were expected in the bulk of the region next week, he said.
The heat this week will boost corn development, while rain and milder temperatures will arrive as the crop begins pollination, a critical stage of development when severe heat and dryness can hurt yields. Crop ratings for corn and soyabeans were likely unchanged this past week as improving conditions in areas east of the Mississippi River likely made up for some declines caused by heat and dryness in the west, analysts said.
Chicago Board of Trade December corn fell 5-3/4 cents, or 1.1 percent, to $5.03-1/2 a bushel, the lowest in a week. CBOT August soyabeans rose 24-3/4 cents, or 1.7 percent, to $14.53-3/4 a bushel, while the actively traded new-crop November contract gained 6-1/2 cents, or 0.5 percent, to $12.63-3/4 a bushel.
The US soyabean crush declined less than expected last month, easing to 119.05 million bushels versus 122.6 million in May, National Oilseed Processors Association data showed on Monday. Analysts had forecast a monthly crush of 117 million bushels, according to a Reuters poll. CBOT September soft red winter wheat futures fell 11-1/2 cents, or 1.7 percent, to $6.69-1/2 a bushel, while September hard red winter wheat shed 7-1/2 cents, or 1.1 percent, to $7.01 per bushel.