New-crop US corn futures fell to their lowest level in more than 2-1/2 years on Tuesday as forecasts for nearly ideal weather during the crop's key development phase buoyed hopes for a record harvest. Soyabean meal sank in a retreat from a new contract high.
Moderate temperatures and occasional light rain over the next week to 10 days will aid the pollinating corn crop in the US Midwest and boost soyabean growth, according to Global Weather Monitoring. Pollination is the most important period of development for determining the size of the corn harvest and is occurring later than normal this year following planting delays. Food companies, ethanol producers and livestock producers hope a massive crop will replenish inventories that are expected to drop to a 17-year low by August 31.
Chicago Board of Trade new-crop December corn fell 2.9 percent to $4.83-1/2 a bushel by 11 am CDT (1600 GMT), while November soyabeans shed 0.6 percent to $12.81 a bushel. The outlook for beneficial weather overshadowed declining crop condition ratings issued by the US Department of Agriculture on Monday and a sale of US corn to Mexico, traders said.
The USDA rated 63 percent of corn as good to excellent as of Sunday, down three percentage points from a week earlier, and 64 percent of soyabeans as good to excellent, down one percentage point. Corn and soyabean crops are in better shape than they were a year ago, when the United States, the largest food exporter, suffered its worst drought since the 1930s.
Private exporters struck deals to sell 106,400 tonnes of US corn to Mexico, including 11,000 tonnes for the 2012/13 marketing year and 95,400 tonnes for the 2013/14 marketing year, which starts on September 1, according to the USDA. CBOT August soyameal was down 1.5 percent at $494.80 per short tonne, pulling back from a contract high of $521. The contract climbed the daily, exchange-imposed trading limit of $20 on Monday as US processors scrambled to find old-crop soya supplies to crush into meal. CBOT September wheat slid 1.2 percent to $6.52 a bushel.