US grain futures extended losses on Tuesday, with corn hitting a near six-month low a day after the US Department of Agriculture surpassed market expectations with projections for ample supplies. At the Chicago Board of Trade as of 11:42 am CDT (1642 GMT), July corn was down 4 cents at $4.20-1/4 per bushel after falling to $4.16, a contract low and the lowest spot price since January 10.
New-crop soyabeans posted the biggest declines by percentage, with the November contract down 13-1/4 cents at $11.44 a bushel after hitting $11.32, a 4-1/2 month low. CBOT wheat followed along, with benchmark September down 6-1/4 cents at $5.71-1/4 a bushel. "The soya complex is seeing mild pressure after yesterday's Black Monday brought on by a pair of bearish items from the USDA," Citigroup futures specialist Sterling Smith said.
The USDA on Monday estimated US 2014 soyabean plantings at a record 84.8 million acres, topping a range of expectations. USDA's estimates of June 1 soya and corn stocks also came in above average trade estimates.
In addition, USDA's weekly crop progress report showed US corn condition ratings improved and soyabean ratings were the highest in 20 years. Weather in the Midwest looks promising, with no sign of stressful heat as the corn crop nears pollination, a crucial growth phase that typically takes place in July. But weather jitters may help underpin prices until the crop is farther along. Wheat fell amid ample world supplies and strong export competition. Egypt's state grain buyer bought 240,000 tonnes of Romanian and Russian wheat at an international tender, bypassing offers of US and French grain.