US corn futures fell below $4 a bushel early on Tuesday for the first time in nearly a month as forecasts for less-threatening weather in the Midwest prompted funds to liquidate long positions, traders said. Soyabeans and wheat followed corn's lead. K.C. hard red winter wheat futures hit contract lows. At 11:49 a.m. CDT (1649 GMT) at the Chicago Board of Trade, the July corn contract was down 22 cents at $3.99-1/4 a bushel after falling to $3.96-3/4, its lowest since May 25.
July soyabeans were down 5 cents at $11.38-1/2 a bushel after dropping to $11.28-3/4, near last week's low. CBOT July soft red winter wheat was down 9-1/4 cents at $4.63-3/4 a bushel. Corn led the move, with technical selling accelerating as the new-crop December contract fell through chart support near $4.20. Commodity funds had built up a massive net long position in CBOT corn in recent weeks as the spot contract neared a two-year high on export demand tied to tightening South American supplies and uncertainty about the US growing season.
Forecasters called for much-needed rains this week, easing worries about dryness. The USDA's report showed topsoil moisture declining in big corn states, including Iowa, Illinois and Missouri. Soyabean futures sagged in sympathy with corn, although the unwinding of long corn/short soyabean spreads lent underlying support. The USDA rated 73 percent of the US soyabean crop as good to excellent, down from 74 percent a week earlier and in line with trade expectations. CBOT wheat followed the weaker trend, with the July contract falling to $4.62 a bushel, its lowest since May 24. The market faced additional seasonal pressure from the US winter wheat harvest, which was 25 percent complete by Sunday, the USDA said.