(Updates with closing prices, adds new analyst quote)
* Wheat down for 10th session, global supplies weigh
* Corn drops on bearish crop ratings
* Profit-taking, planting pace weigh on soybeans
By Mark Weinraub
CHICAGO, June 3 (Reuters) – U.S. corn futures fell 1.6 percent, their fourth straight losing session, on Tuesday on forecasts for rain across the U.S. Midwest that should spur growth of the recently seeded crop, traders said.
Expectations for a bumper harvest of corn already were high following timely planting and a U.S. government report that showed early development was better than expected, adding to the bearish sentiment hanging over the market.
The good growing weather also pressured soybeans, which dropped 1.3 percent.
“The bears continue to have the grain markets firmly in their grip as excellent weather is expected again for at least the next 10 days across most growing areas,” said Sterling Smith, futures specialist at Citigroup in Chicago. “It is very early in the growing season and there is still plenty of time for a weather malfunction, but this crop is off to a very good start.
Wheat prices sagged for the 10th session in a row, hitting a three-month low, on pressure from the drop in corn prices and plentiful global supplies.
The U.S. Agriculture Department said on Monday afternoon that good-to-excellent ratings for corn were 76 percent, beating market expectations by 6 percentage points. The weekly report also showed that the pace of soybean planting surged ahead of the normal pace as northern farmers took advantage of near perfect conditions to make up for their delayed start.
Chicago Board of Trade corn for July delivery settled down 7-1/4 cents at $4.58-1/4 a bushel. Prices bottomed out at $4.56, the lowest for the front-month contract since Feb. 28.
“Funds started liquidating last week,” said Karl Setzer, market analyst with MaxYield Cooperative. We are just seeing a continuation of that. The downside has quickly become the path of least resistance and that is where we are seeing the market head.” CBOT July soybeans were 19-1/4 cents lower at $14.81-1/4 a bushel. Traders noted some unwinding of bull spreads, with the closely watched July-November spread narrowing by 11-1/4 cents.
CBOT July wheat was 8-1/4 cents lower at $6.12-1/2 a bushel. The session low of $6.11 was the lowest for the front-month contract since hitting $6.10 on March 3.
CBOT wheat has fallen 9.2 percent during the 10-session losing streak, which is the market’s longest string of declines in 20 years. RIC
Change Change 1Cc1 CORN JUL4
465.5 1Sc1 SOYBEANS JUL4
1481.75 -1.28 -19.25
1500.5 1SMc1 SOY MEAL JUL4
506 1BOc1 SOYBEAN OIL JUL4
38.31 1Wc1 WHEAT SRW JUL4
620.75 1RRc1 ROUGH RICE JUL4
14.55 -2.12 -0.315
14.865 BL2c1 M.WHEAT EUR NOV4
190.5 CLc1 LIGHT CRUDE JUL4
102.47 .DJI DJ INDU AVERAGE 16734.29 -0.06
-9.34 16743.63 XAU= GOLD
1244 .BADI BALTIC EXCH DRY
934 .DXY US DOLLAR INDEX
80.529 -0.14 -0.115
80.644 In U.S. cents, benchmark contracts, except EU wheat (euros) and soymeal (dollars). CBOT wheat, corn and soybeans per bushel, rice per hundredweight, soymeal per ton and soyoil per lb. (Reporting by Mark Weinraub; Editing by Chizu Nomiyama)