US corn and soyabean futures weakened on Monday on forecasts for beneficial weather for crop development, traders said. Wheat futures also were weak, dropping to their lowest in more than a month, as sizeable world supplies countered support from drought-hit US spring wheat yields.
But the declines were kept in check by some end-user pricing at market lows. Traders also were unwilling to push prices lower until there was more clarity about final yields. "There is enough crop stress and problems ... that you have very limited downside risk until we start harvest," said Brian Hoops, analyst at Midwest Market Solutions
Grain markets were awaiting direction from weekly US government crop ratings published after the market close on Monday for a further indication of growing conditions. At 9:38 am CDT (1438 GMT), Chicago Board of Trade November soyabean futures were down 10-1/2 cents a bushel at $10.02-1/2. CBOT December corn was 3-1/2 cents lower at $3.84-1/2 a bushel.
Market participants have been assessing weather forecasts and field reports to establish the extent of crop stress due to dry conditions. The light weekend rain, heavier rain forecast later this week in some areas and moderate summer heat may help corn and soyabean crops, although the drier western Midwest remained a concern.
CBOT September soft red winter wheat futures were down 8 cents at $4.73 a bushel after hitting their lowest since June 28. Dry weather has been more severe in the northern US Plains, hitting yield prospects for spring wheat, but large harvests in Europe and rain relief in Australia were serving to underline ample global supplies.
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