US wheat futures fell more than 2 percent early on Monday on improving weather forecasts for the southern Plains winter wheat belt, analysts said. Corn futures followed wheat lower while soyabeans were choppy, consolidating near two-month lows set last week. As of 12:36 pm CDT (1745 GMT), Chicago Board of Trade May wheat was down 10 cents at $4.30-1/2 per bushel after touching $4.30-1/4, its lowest since February 1. CBOT May corn was down 3-1/4 cents at $3.61 a bushel and May soyabeans were down 1 cent at $10.05-1/2 a bushel.
Wheat was the biggest mover on a percentage basis. The Commodity Weather Group said updated forecasts raised the likelihood of much-needed rain in the southern Plains in the 11- to 15-day time period, although showers could miss some dry areas. Moisture would boost US production prospects at a time when global and domestic wheat supplies from last year remain burdensome.
The sell-off in wheat dragged down corn, which was headed for a sixth consecutive lower close despite strong weekly US export data. May corn dipped to $3.60-3/4, its lowest since January 12. The US Department of Agriculture reported export inspections of US corn in the latest week at 1,547,022 tonnes, at the high end of a range of trade expectations.
However, a big South American corn harvest is expected.
Private analytics firm Informa Economics raised its projection of US 2017 corn plantings to 90.8 million acres, from its January forecast of 90.5 million, trade sources said. The firm raised its soyabean plantings forecast to 88.7 million acres, up about 21,000 acres from January. CBOT soyabean futures appeared to be consolidating after the May contract set a two-month low last week at $10.03 a bushel, pressed by forecasts for a record-large Brazilian soya harvest.