US grain and soyabean futures extended losses on Tuesday as crops in the American Midwest were poised to benefit from rains, traders said. Technical selling and better-than-expected US Department of Agriculture crop condition ratings added pressure on prices. Showers in parts of the Midwest and Mississippi Delta temporarily eased concerns about the risk for damage to corn and soyabeans from hot, dry weather. Farmers are nervous about the health and size of their crops after heavy rains and flooding caused unprecedented delays in corn planting this spring. The planting problems left some crops with shallow root systems that make them more vulnerable to damage from unfavourable weather.
"Over the weekend there was concern about hot weather for US corn regions, but forecasts have now flipped," said Matt Ammermann, commodity risk manager for INTL FCStone. Most-active December corn on the Chicago Board of Trade fell 7-3/4 cents, or 1.7%, to $4.39-1/4 a bushel by 11:00 a.m. CDT (1600 GMT). Corn fell almost 3% on Monday after hitting five-year highs.
Most-active November soyabeans were down 13-3/4 cents, or 1.4%, at $9.06-1/4 a bushel. September wheat dropped 1-3/4 cents, or 0.3%, to $5.06 a bushel at the CBOT. The USDA surprised traders on Monday afternoon by raising its condition rating for US corn to 58% good to excellent in a weekly report. That was up from 57% a week earlier and above market expectations for 56%.
US soyabeans were rated 54% good to excellent, up from 53% last week and above analysts' expectations for 53%. The USDA said 57% of the US winter wheat harvest was complete, up from 47% last week but below expectations of 62%. US spring wheat was rated 76% good to excellent, behind market expectations of 78%.
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