The most active corn contract for December delivery rose 5.75 cents, or 0.97 percent, to settle at 6.01 U.S. dollars per bushel. September wheat fell 15.75 cents, or 1.94 percent, to settle at 7.95 dollars per bushel. November soybean lost 8.5 cents, or 0.63 percent, to settle at 13.41 dollars per bushel.
CBOT grain futures came under acute selling pressure based on the fear of the U.S. central bank's war against inflation and the coming recession. Grain fell on risk off positioning.
The volatility of CBOT futures is increasing due to the Fed's war against inflation, threatening Central U.S. weather, and the uncertainty of an export corridor for Ukraine grain.
Supply should dominate CBOT price direction into September. U.S., EU, Canadian, and Argentine crop sizes are in retreat due to adverse weather. Chicago-based research company AgResource expects extreme market volatility to persist.
China booked a total of 265,000 metric tons of U.S. wheat. AgResource learnt that there is another 65,000 metric tons of U.S. SWW wheat sold to an unknown destination.
For the week ending July 7, the United States sold 37.4 million bushels of wheat, and 2.3 million bushels of old crop and 13.7 million bushels of new crop corn. In the week, 13.3 million bushels of U.S. old crop soybeans were cancelled while U.S. new crop soybean sales were 4.2 million bushels.
For respective crop years to date, the United States has sold 260 million bushels of wheat, equal to the pact of last year; 2,378 million bushels of corn, down 13 percent; and 2,184 million bushels of soybean, down 4 percent.
There are considerable unknowns regarding the Ukraine export corridor.
Rain is impacting the Eastern Midwest while the Western Midwest and the Plains hold in a hot and arid weather pattern. Extreme heat will be felt in the Plains and Western Midwest on numerous days.
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