Corn and soybean futures both posted solid losses on Monday, pressured in part by declining crude oil prices. Wheat was also lower.
Crude oil initially rallied in overnight trading on the US military strikes on Iran earlier on the weekend. However, the gains in crude eventually gave way to losses amid market sentiment that Middle East oil supplies are unlikely to be severely disrupted. Corn and soybeans were further pressured by generally good weather and crop development conditions in the American Midwest. Weekend temperatures were warm, but large parts of the Corn Belt are expected to see more rain in the coming days. A drier pattern is possible in the July 1-7 period, but soil moisture should still be adequate.
September corn fell 8 cents to $4.17 ½, and December lost 7 ½ cents to $4.33 ¾. August soybeans dropped 9 ½ cents to $10.62, and November closed 14 cents lower at $10.46 ¾.
Wheat futures were caught in the corn-soybean downdraft, with further pressure coming from expectations of better US winter wheat harvest progress. This afternoon’s USDA crop progress report is expected to show the national harvest at 21% complete as of Sunday, up from 10% a week earlier. Rising Russia wheat production estimates undermined the market as well. September Chicago closed 14 cents lower at $5.69 ½, September Kansas City lost 13 ¾ cents to $5.65, and September Minneapolis was down 11 ½ cents at $6.45 ¼.
