The most active corn contract for July delivery fell 4.5 cents, or 0.77 percent, to settle at 5.8 U.S. dollars per bushel. July wheat plunged 9 cents, or 1.46 percent, to settle at 6.0925 dollars per bushel. July soybean lost 16.75 cents, or 1.17 percent, to settle at 14.1075 dollars per bushel.
CBOT agricultural markets were lower as overall macro input leans negative. Consensus points to a 0.25-percentage point hike in U.S. benchmark rates Wednesday, but this most likely will be the last of hikes for this cycle.
Markets are oversold, corn and wheat in particular. Chicago-based research company AgResource reiterates that volatility will be the theme of 2023 as markets work to transition from historical tightness to adequate supplies. Mother Nature into August will determine whether this occurs.
It is clear Egypt and other major importers will continue to source near-term supplies from Russian and Eastern Europe.
A nearly cut-off low pressure trough is projected to swirl around the Central United States on May 10-13, which may trigger a stagnant pattern of heavy rainfall across the Central Plains, Delta and far Southern Midwest. Heavy cumulative rainfall will impact all but the far Northern Plains and eastern Midwest.
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