GRAINS-Soybeans and corn drop on China demand concerns, US crop tour is awaited

Chicago soybean and corn contracts fell on Monday due to favorable weather conditions in the United States and low export demand, as tensions between China and the U.S. continued.

The expectation of a large U.S. harvest has also led to a weakening in corn.

At 1110 GMT, the most active soybeans on Chicago Board of Trade CBOT fell by 0.5% to $10.37-1/4 a bushel.

Corn dropped 0.5% to $4.03 per bushel. Wheat fell by 0.4% to $5.24 1/2 a bushel.

Matt Ammermann is StoneX's commodity risk manager. "Weather conditions in the U.S. Midwest continue to be favorable for soybeans. Sunshine this week will help crops reach their finish line." "U.S. There is no news of a U.S. China trade agreement to increase Chinese purchases of U.S. soy beans.

The growing season for U.S. Corn has been near perfect and continues to be.

U.S. president Donald Trump last weekend urged China quadruple their soybean purchases. However, there was little news about progress in U.S. - China trade talks. Meanwhile, U.S. exporters of soybeans are missing out on China's sales.

After the U.S. Agriculture Department forecasted a record U.S. Corn crop last week, traders are eagerly awaiting the results of this week's Pro Farmer Midwest U.S. Crop Tour. This tour will measure corn yields in seven U.S. States and assess soybean production potential.

Ammermann stated that "Wheat is still lower in the outlook of large world supplies, which will be looking for buyers. U.S. sales are impressive but more demand at current prices is required," he said. Ammermann said that the EU and Black Sea will also be increasing competition for U.S. Wheat in export markets in the near future. (Reporting and editing by Harikrishnan Nair, Christina Fincher and Harikrishnan Nair in Hamburg; Additional reporting by Ella Cao in Beijing and Lewis Jackson).

(source: Reuters)