Corn, soybean, and wheat futures all closed lower on Tuesday, as favourable U.S. crop weather and improving moisture conditions across parts of the Midwest outweighed support from a rebound in crude oil prices.
Corn futures weakened as traders focused on improving crop conditions across key U.S. growing areas. Beneficial rainfall over the holiday weekend boosted soil moisture in dry sections of Nebraska, South Dakota, Iowa, and Minnesota, while additional scattered rain elsewhere in the Midwest supported early crop development. Although crude oil moved back above US$100 per barrel following renewed U.S. strikes in Iran, the strength in energy markets was not enough to offset expectations for ample corn supplies. July corn was down 5 ¾ cents to $4.57 ½, and December lost 4 ½ cents to $4.82.
Uncertainty surrounding global trade and geopolitical developments further weighed on soybeans. Despite stronger crude oil prices lending some support through biofuel demand, traders remained focused on the lack of details around trade with China and favourable Midwest weather. July beans fell 10 ½ cents to $11.86, and November dropped 7 ½ cents to $11.80 ¼.
Benchmark Chicago wheat futures posted a fourth straight daily decline as rains eased drought concerns in portions of the U.S. Some early harvesting of winter wheat is also underway across the more southern Plains locations. July Chicago was 10 ¾ cents lower at $6.35 ½, and July Kansas City was down 5 ¾ cents at $6.76 ¼. July Hard Red Spring eased 3 cents but July Minneapolis managed a 2 ¼-cent gain to $6.91 ¾.
