US new-crop corn futures sank to a fresh contract low on Tuesday on forecasts for mild weather to boost the size of the US crop, which already has its best condition rating in 20 years. Soyabeans were steady to lower and wheat was flat as agricultural markets remained under pressure from prospects of ample global supplies.
The US Department of Agriculture, in a weekly report on Monday, unexpectedly raised its condition rating for the US corn crop by 1 percentage point to 76 percent good to excellent. Condition ratings for soyabeans held steady at 72 percent good to excellent, with both crops off to their best starts since 1994. Farmers are expected to harvest a record-large soya crop and a near-record corn crop due to large plantings, mild temperatures and occasional rainfall. "The high ratings combined with forecasts for non-threatening weather through August 1 should keep pressure against prices," said Brian Hoops, president of Midwest Market Solutions.
"Outside of small, technical short-covering rallies, it is hard to imagine a sustained rally developing," he said. Chicago Board of Trade December corn dropped 6-1/2 cents, or 1.7 percent, to $3.81-3/4 a bushel after touching a contract low of $3.78-1/4. It was the contract's tenth decline in 11 sessions. November soyabeans rebounded from early lows and closed unchanged at $10.86-1/4 a bushel, lifted by short-covering late in the session and solid demand from Chinese importers for post-harvest supplies.
But a slower-than-anticipated crush pace last month kept pressure on nearby contracts, with August ending down 16-1/2 cents, or 1.4 percent, at $11.80-1/2 a bushel, the lowest for a spot contract since January 2012. September wheat was steady at $5.37-3/4 a bushel, with prices anchored by rising supplies from the ongoing harvest. Commodity funds sold an estimated net 9,000 corn contracts on the day, bought a net 2,000 wheat contracts and were net even in soyabeans, trade sources said. The National Oilseed Processors Association on Tuesday said its US members crushed a smaller-than-expected 118.718 million bushels of soyabeans in June, down 7.8 percent from May and nearly 800,000 bushels below the average trade estimate.
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