The most active corn contract for July delivery fell 10 cents, or 1.66 percent, to settle at 5.94 U.S. dollars per bushel. July wheat plunged 25 cents, or 4.06 percent, to settle at 5.91 dollars per bushel. July soybean lost 40.75 cents, or 3.05 percent, to settle at 12.965 dollars per bushel.
CBOT corn, soybean and wheat futures sagged on bearish demand fears and hope for rain in the Midwest as U.S. weather pattern may change in mid-June. It is all about the weather over the next eight to 12 weeks.
The market is banking on long-range weather forecasts that hint at a U.S. weather pattern change after June 12. The existing trend for weather in the Midwest and Delta is dryness with building heat. And wheat crop in the Plains will struggle with too much rain that is causing crop quality issues. Chicago-based research company AgResource warns against selling this break.
U.S. export inspections for the week ending May 26 were 51.7 million bushels of corn, 8.8 million bushels of soybeans and 14 million bushels of wheat. For respective crop years to date, the United States has shipped 1,129 million bushels of corn, down 32 percent year on year; 1,780 million bushels of soybeans, down 2 percent; and 719 million bushels of wheat, down 2 percent.
China continues to actively load out remaining U.S. old crop corn. AgResource estimates that China has less than one million metric tons of U.S. corn yet to load out this summer that is in the known sales category.
Russian new crop wheat FOB is priced at 240 dollars per metric ton with a new tax system to start on June 7. The tax is expected to decline.
Weather forecast maintains dryness for the majority of the Midwest for the next ten to 12 days. Daily showers will fall across the Central and Southern Plains. Concern is growing for hard red winter (HRW) wheat crop quality.
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