GRAINS-Chicago corn and soybeans drop due to large US crop prospects, favorable weather
Chicago soybean and corn contracts fell on Tuesday due to expectations of large U.S. crops amid favorable weather in the Midwest.
By 0444 GMT the most active soybean contract on Chicago Board of Trade dropped 0.25%, to $10.09 a bushel. This was a third session of losses. Corn dropped 0.13%, to $3.93 per bushel.
The U.S. Crop Belt is expected to receive timely rains and cooler temperatures this week, which will increase the expectation of bumper crops. Corn and soybean futures are under pressure.
Wheat prices fell 0.05%, to $5.38 per bushel. This was due to the winter wheat harvest taking place in Northern Hemisphere.
Top U.S. economic officials and Chinese economic officials held five-hour long talks in Stockholm, Sweden, on Monday to resolve the long-standing economic disputes that are at the heart of the trade war between two of the world's largest economies. They also sought to extend the truce for three months.
The analysts at J.P. Morgan stated that the U.S. Midwest climate, export flows, and forthcoming details of tariff rates as well as ongoing trade discussions with China remain upside risk drivers.
In two weeks, the U.S. Department of Agriculture will release its key August WASDE Report. It is expected to give further guidance about U.S. crop production.
Exports of soybeans, and their products, will resume in Argentina once the government has formalized a tax reduction. Argentina is the largest producer of soymeal, soyoil and other byproducts.
Traders said that commodity funds sold CBOT corn and soybean futures and bought wheat futures on Monday.
(source: Reuters)
