SINGAPORE: Chicago corn futures lost more than 1% on Wednesday and soybeans extended losses, as US forecasts for much-needed rains eased concerns over yield losses after recent hot and dry weather conditions.

Wheat slid 2%, after rallying to a five-month high on Tuesday following Russia’s attacks on Ukrainian ports and grain infrastructure that raised concerns about global supplies.

Rains forecast for this week will ease some of the concerns over dryness in major portions of the US corn-belt during the last several weeks, an analyst said.

The most-active corn contract on the Chicago Board of Trade (CBOT) gave up 1.2% to $5.58-3/4 a bushel, as of 0250 GMT, and soybeans dropped 0.7% to $14.10 a bushel.

Wheat lost 2% to $7.45-1/2 a bushel after climbing to its highest since Feb. 21 at $7.77-1/4 in the last session. Forecasts of crop-friendly rains in the US Midwest weighed on corn and soybean futures.

Traders continue to monitor crop weather in the US Midwest as the region’s corn finishes pollinating, a key growth stage in determining yields, while soybeans approach their pod-setting phase in August.

Wheat prices rallied earlier this week after Russia destroyed Ukrainian grain warehouses on the Danube River in a drone attack, targeting a vital export route for Kyiv in an expanding air campaign that Moscow began last week after quitting the Black Sea grain deal.

Funds cover CBOT corn shorts but remain skeptical of price strength

The International Monetary Fund estimated that Russia’s exit from a deal allowing Ukrainian exports via the Black Sea could drive global grain prices up by 10-15%, but said it was continuing to assess the situation.

Commodity funds were net sellers of CBOT corn, soybean and soyoil futures contracts on Tuesday and net buyers of soymeal and wheat futures, traders said.