Chicago agricultural commodities dropped across the board Monday, led by wheat.
The most active corn contract for December delivery dropped 9 cents, or 2.17 percent, to close at 4.0625 dollars per bushel. September wheat lost 22.75 cents, or 3.93 percent, to close at 5. 5675 dollars per bushel. November soybeans fell 8 cents, or 0.71 percent, to close at 11.255 dollars per bushel.
Favorable weather forecast for Central U.S. and the world along with liquidation by funds continued to add pressure on grains. Under the pressure, corn and wheat prices have fallen to 4 year lows Monday. With prospect for record large U.S. corn production and an abundance of world wheat ahead, funds were noticeable sellers. Market analysts hold that unless there is an immediate change in U.S. or world weather patterns, additional selling is expected, and the next downside price target for December corn will be 3.9 dollars, market analysts hold.
Soybean also dropped Monday on active profit taking. End users as well as exporters are not showing any willingness to buy old crop soy supplies.
U.S. Department of Agriculture (USDA) reported that for the week ending July 3, U.S. exported 42.5 million bushels of corn, 2. 2 million bushels of soybeans, and 15.3 million bushels of wheat. All grain exports fell below trade expectations and were considered slightly bearish.
Meanwhile, USDA announced export of 347,000 tonnes of new crop U.S. soybeans to China. To date, U.S. 2014-2015 soybean sales to China are estimated at 6.7 million tonnes, about 3 million tonnes lower than last year.
USDA is scheduled to update its supply and demand report on July 11 following USDA stocks and seeding report last week. It is expected that the report will highlight record large U.S. 2014 soybean seeding and reduce corn feeding during the third quarter.
Weather forecast for Central U.S. remains favorable with scattered showers and cooler than normal temperatures into late July. U.S. crop condition ratings are expected to rise for both corn and soybeans into July 21.