Chicago agricultural commodities dropped across the board Tuesday amid favorable weather and the potential for record harvests.
The most active corn contract for July delivery went down 7.25 cents, or 1.56 percent, to close at 4.5825 dollars per bushel. July wheat fell 8.25 cents, or 1.33 percent, to close at 6.125 dollars per bushel. July soybeans lost 19.25 cents, or 1.28 percent, to close at 14.8125 dollars per bushel.
Weather forecast for Central U.S. shows showers and storms will pull across the Plains and the Midwest every three to four days into late June, favorable to growth of grain crops. Meanwhile, near to above normal temperatures look to persist into June 20, setting up ideal weather conditions for crops. Market analysts hold that long-term trends for grain crops remain bearish without any dire weather threat in U.S. and in other parts of the world.
Also, U.S. Department of Agriculture (USDA) may raise U.S. corn yield by 1 to 3 bushels per acre in its monthly report to be released next week, dampening corn and wheat prices further. Market analysts predict the next price target to be tested by soybeans is 14.45 to 14.50 dollars; that by corn, 4.45 to 4.50 dollars; and that by wheat, 6.00 to 6.10 dollars.
World importers are unwilling to price wheat until more is known about political stability in Ukraine and new crop supply availability.
Soybean dropped Tuesday on liquidation. It is estimated that U. S. imported 15 million to 17 million bushels of soybean in May, and the country's soybean imports may amount to 60 million bushels up to present.