US corn futures fell more than 3 percent on Monday and soyabeans also weakened on forecasts calling for much-needed rains this week in the US Midwest, traders said. Wheat was pulled lower by corn and soya while remaining under pressure from progress in the US winter wheat harvest. At the Chicago Board of Trade as of 12:23 pm CDT (1723 GMT), July corn was down 15 cents at $4.22-3/4 per bushel. July soyabeans were down 10-1/2 cents at $11.49 a bushel and July wheat was down 4-1/4 cents at $4.77 a bushel.
Corn posted the biggest declines, in part because it is seen as the most likely to benefit from rains this week. Corn in the heart of the US Midwest is nearing its crucial pollination stage, which typically takes place in July. For soyabeans, the key pod-setting phase comes in August. The US Department of Agriculture's weekly crop progress report later on Monday is expected to show a decline in corn and soyabean condition ratings following a hot week in the Midwest, a Reuters poll of analysts showed.
The USDA should rate 73 percent of the corn crop as good to excellent, down from 75 percent the previous week, according to the poll. For soyabeans, analysts on average expected the USDA to rate 73 percent of the crop as good to excellent, down slightly from 74 percent a week earlier. Commodity funds hold large net long positions in CBOT corn and soyabeans, leaving those markets vulnerable to long liquidation. The supplement to the US Commodity Futures Trading Commission's weekly Commitment of Traders report showed non-commercial traders as of June 14 held the biggest net long positions in CBOT corn and soya futures since August 2012.