US grain futures shed 1 percent or more early on Thursday, with corn falling to a three-week low as growing conditions turned ideal in the Midwest grain belt, dampening bullish sentiment for tight old-crop supplies. Soyabean futures were heading for their largest daily losses in about a month as investors sold off long positions and exited bull spreads that earlier this week lifted prices to the highest levels since November.
"It's just aftermath positioning from the (crop) report," said Ken Smithmier, analyst at the Hightower Report in Chicago. The US Agriculture Department in a monthly forecast on Wednesday said US farmers will harvest the largest corn and soyabean crops ever this autumn even as existing supplies continued to tighten. The largely favourable forecast weighed on corn futures at the Chicago Board of Trade, with benchmark July corn easing 8 cents to $6.42-3/4 per bushel and new-crop December corn falling 6-1/2 cents to $5.31 as of 10:24 am CDT (1524 GMT).
CBOT July soyabeans fell 33 cents to $15.07-3/4 per bushel and November soyabeans were down 25-1/2 cents to $12.89. USDA cut its corn production forecast by 1 percent, compared to a more than 2 percent reduction expected by analysts, by reducing yields and leaving planted acreage unchanged. July wheat futures fell 5 cents to $6.78 per bushel, the lowest level since May 21.