US corn futures sank 1.3 percent to a six-week low on Thursday, under pressure from improving weather forecasts across the US Midwest as the crop nears key developmental phases, analysts said. The weather outlook also weighed on soyabeans, which eased to a three-week low. Wheat also weakened, dragged down by the drop in corn as well as seasonal harvest pressure.
Corn futures were on track for their fourth straight losing session, which would be the longest streak of lower closes since one of an equal length that ended on March 1. "Heavy rains helped crops from eastern Iowa into Ohio over the past 24 hours and maps for the next seven days call for a couple more systems to keep filling in many of the dry spots in the growing region," said Bryce Knorr, senior grain market analyst at Farm Futures.
At 10:09 am CDT (1509 GMT), Chicago Board of Trade July corn futures were off 5 cents at $3.88 a bushel. Prices bottomed out at $3.84 a bushel, the lowest for the most-active contract since May 12. Storms rolled through the US corn belt on Tuesday and Wednesday, easing concerns about dryness in some areas. With the crop heading into its pollination phase, which typically occurs in July in the Midwest, weather remained the focus.
"The bearishness is induced by beneficial rainfalls reaching the corn belt," consultancy Agritel said. "Funds, which are still very long on corn and soyabean because of fears of La Nina this summer, keep slashing their positions." CBOT July soyabeans were 2-1/2 cents lower at $11.35 a bushel and CBOT July wheat was off 1-3/4 cents at $4.57 a bushel.
Losses in all three commodities were limited by a weaker dollar and broad gains in commodities and equities as voting got under way in Britain's referendum on EU membership. The wheat contracts received additional support from by worries over potential quality problems in Europe and the Black Sea region after heavy spring rain. Analysts also see wheat as attractively priced to pick up livestock feed demand from corn. "Corn is facing big competition from wheat," said Ole Houe, an analyst at brokerage IKON Commodities in Sydney.