The most active corn contract for December delivery plunged 40 cents, or 6.9 percent, to settle at 5.3975 dollars per bushel. September wheat shed 26.75 cents, or 4.1 percent, to settle at 6.26 dollars per bushel. November soybean lost 94 cents, or 6.72 percent, to settle at 13.05 dollars per bushel.
CBOT agricultural futures fell sharply on massive fund liquidation in corn. Wheat and soybeans followed corn with sharp daily losses, Chicago-based research company AgResource noted.
But as the top end of the U.S. corn and soybean yield has been lost due to extreme heat and weeks of dryness in the Dakotas, Minnesota, and much of Northern Iowa, CBOT agricultural futures are too cheap relative to fundamentals and coming demand, AgResource holds.
U.S. weekly grain export inspections for the week ending July 1 were 48.7 million bushels of corn, 7.6 million bushels of soybeans and 9.5 million bushels of wheat. For respective crop years, the United States has exported 2,289 million bushels of corn, up 69 percent year on year; 2,110 million bushels of soybeans, up 54 percent; and 65 million bushels of U.S. wheat early in the crop year.
Weather forecast shows it will be much warmer and drier for the Western Midwest and the Northern Plains. A dire drought would be maintained across the Northern Plains and the Northwest Midwest into July 20.
Acute CBOT volatility has left corn, soybean and wheat now back at levels not seen since September. The Brazilian corn crop losses are adding up in world that is increasing tight of grain. AgResource sees no reason to back away from a bullish outlook with new contract highs forecast.