The most active corn contract for December delivery plunged 15.5 cents, or 2.54 percent, to settle at 5.9525 U.S. dollars per bushel. September wheat fell 0.5 cent, or 0.06 percent, to settle at 8.1225 dollars per bushel. November soybean lost 22 cents, or 1.59 percent, to settle at 13.5825 dollars per bushel.
CBOT grain prices fell on forecast of improving weather in Central U.S. and the fear that the U.S. dollar could rally sharply if Russia does not turn on the gas following the maintenance of the Nord Stream pipeline. Macroeconomic concerns have been directing CBOT prices since the last 10 days of June. The back and forth of the market have limited trader and fund participation in recent days.
Markets seem to be finding near-term equilibrium at 5.80-6.20 dollars for December corn, 13.20-14.00 dollars for November soybeans; and 8.00 dollars for CBOT wheat. Chicago-based research company AgResource holds that it is critical that mild temperature and regular rain are established into late August following recent heat and rapid soil moisture loss across the Plains, Southwest Midwest and mid-South.
Egypt's GASC canceled its tender for North and South American and Australian wheat supplies. However, GASC will buy additional wheat via direct deals on July 20.
There remains much unknown over the near-term creation of an export corridor in the Black Sea. It is reported that Europe will ease sanctions on Russian banks in order to easily facilitate the movement of grain and fertilizer.
It will be much warmer in the Plains, Missouri and Iowa this week, but rainfall has been added to Northeastern and Eastern Midwest beyond July 26 as the mean position of a high pressure ridge meanders into the Southeast. In the last 18 hours, weather forecasts have trended cooler and wetter in late July.
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