Chicago | Reuters—U.S. corn futures dropped on Tuesday on forecasts for good spring planting weather, easing concerns about a lower-than-expected acreage outlook from the U.S. Department of Agriculture (USDA) last week.
Soybeans turned lower late in the session, with technical selling developing after prices broke through previous support levels.
Wheat futures fell after the USDA reported winter crop conditions at the highest level in five years and as more rain was forecast for the southern Plains.
Analysts blamed several factors for the soybean shift, including an accelerating South American harvest and uncertain feed demand after a case of avian influenza was found in a person who had contact with infected dairy cows.
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Grain traders are monitoring Midwest weather forecasts as planting season nears to gauge whether the government’s acreage outlook released late last week will shift.
The USDA pegged U.S. corn acres well below expectations, and favorable planting weather could trigger an expansion of seedings.
“We’ve got more moisture in the Midwest and a warming trend into the next week,” said Don Roose, president of U.S. Commodities.
Normal to above-normal rains are expected in much of the Midwest corn belt in the six- to 10-day period, followed by a drier pattern that could accelerate seeding, according to a Commodity Weather Group forecast.
Chicago Board of Trade May corn CK24 fell 9 cents to $4.26-1/2 a bushel while May soybeans SK24 fell 11-3/4 cents to $11.74 a bushel.
CBOT May wheat WK24 fell 11-3/4 cents to $5.45-1/4 a bushel.
In its first national crop progress report since before winter, the USDA on Monday rated 56 per cent of the U.S. winter wheat crop in good to excellent condition.
That was below average trade expectations but above a pre-winter score of 50 per cent and the highest for this time of year since 2019.
—Additional reporting for Reuters by Gus Trompiz in Paris and Peter Hobson in Canberra
