The most active corn contract for December delivery fell 2.75 cents, or 0.45 percent, to settle at 6.0725 U.S. dollars per bushel. September wheat rose 4 cents, or 0.52 percent, to settle at 7.7975 dollars per bushel. November soybean lost 8.75 cents, or 0.62 percent, to settle at 14 dollars per bushel.
New crop soybeans sagged on the weekend rains and the cooler weather forecast for the Eastern and Central Midwest this week. Wheat recovered as taxes and the Russia-Ukraine conflict may limit Russian grain export logistics.
CBOT values will chop into Friday when U.S. Department of Agriculture (USDA) crop report will be released. While producers said corn and soybeans in Kansas, Nebraska, Missouri and Southern and Southwest Iowa are struggling, crops elsewhere are improving.
Chicago-based research company AgResource holds that this is no place to run bearish.
USDA reported that 132,000 metric tons of U.S. new crop soybeans were sold to China, 105,000 metric tons of U.S. corn sold to Italy, and 120,000 metric tons of U.S. corn to an unknown buyer, rumored to be Spain.
In early March, Brussels changed regulations allowing corn imports from all, including the United States. Genetically modified organisms (GMO) trait concerns were abandoned on supply concern. The dropping of U.S. GMO import limitations could allow a significant amount of U.S. corn to flow into the European Union due to the ongoing drought there. AgResource estimates EU 2022-2023 corn imports forecast at 22-24 million metric tons.
EU has been active booking Brazilian corn. But on a landed basis, U.S. corn will be cheaper from October onward. Ukraine cargoes could work into EU under the corridor deal, but the certainty of supply is unknown.
Dryness will remain across the Plains and Western Midwest into Aug. 20. Showers are forecast for the Eastern Midwest and Michigan every three to four days on ridge riding storm systems. The heat and dryness will continue to impact the crop.
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