Chicago Board of Trade (CBOT) corn, wheat and soybeans all traded lower Tuesday, with corn falling sharply, as moderate profit taking unfolded amid steady corn crop ratings.
The most active corn contract for December delivery lost 13 cents, or 2.88 percent, to close at 4.3875 U.S. dollars per bushel. September wheat delivery shed 4.75 cents, or 0.83 percent, to close at 5.71 dollars per bushel. November soybeans fell 3.5 cents, or 0.34 percent, to close at 10.25 dollars per bushel.
Chicago corn retreated by nearly 3 percent Tuesday after it has rallied almost 28 percent since June 19 to the highest level in 13 months, as investors took their profits after the corn condition released by the U.S. Department of Agriculture (USDA) Monday was better than expected.
Wheat and soybean futures were also down Tuesday as the U.S. weather forecast is much improved with a lack of soaking rainfall across the Central and Eastern Midwest throughout the next ten to 12 days.
According to the National Weather Service, areas of the Dakotas, Iowa and the Northwestern Corn Belt will see welcome moisture later this week. No extreme heat is indicated into late July.
"Whether a seasonal top in corn has been posted hinges upon weather in late July and early August, and whether the current warm/dry forecast holds in the coming days. Wide-ranging yield estimates from even the most seasoned analysts will sustain volatility, but we view the markets as overbought and expensive relative to other world origins," said AgResource company, a Chicago-based agricultural research institute.