Corn, wheat and soybean futures all closed lower on Monday as traders returned from the long U.S. Juneteenth holiday weekend, with easing geopolitical tensions and declining crude oil prices weighing on agricultural markets.
Corn futures weakened as the drop in crude oil reduced support tied to the ethanol sector. The market was also pressured by generally favourable U.S. crop conditions and the absence of widespread heat threats across the Corn Belt, maintaining expectations for strong yield potential. September corn fell 5 ½ cents to $4.19 ¾, and December lost 4 ½ cents to $4.39 ½.
Wheat futures declined as harvest activity continued to expand across the U.S. winter wheat belt, bringing additional supplies into the market. Improving prospects for grain movement through key international shipping routes also reduced some of the geopolitical risk premium in wheat prices. September Chicago dropped 6 ½ cents to $6.07 ½, and september Kansas City lost 11 ¼ cents to $6.40. September Hard Red Spring was down 10 ½ cents at $6.19 ¼, and September Minneapolis was 9 ¼ cents lower at $6.38.
Soybean futures moved lower alongside losses in crude oil and soybean oil, as easing Middle East tensions reduced support for the broader vegetable oil and biofuel complex. Favourable weather across much of the U.S. Midwest and uncertainty over the pace of Chinese demand for American soybeans added to the pressure. August beans ended 5 ¾ cents lower at $11.22 ½, and November eased 1 ¼ cents to $11.41 ½.
