Corn prices dragged by improving weather prospects

On Monday, corn prices took a downturn, pressured by the prospect of improving environmental conditions. Accordingly, maize futures declined 1.08% or 8.12 points to $742.12 per metric ton on the Chicago Board of Trade.

In the latest weather report, the United States Midwest crop was more likely to receive the much-needed rain. In line with this, the expectations of the severe drought have notably weakened. This situation is critical in the yield-determining pollination phase of corn development, an essential summer growth stage.

Nevertheless, stress from dryness could spread to about 40.00% of US maize and soy next week. This is before showers could curb the driest areas to less than one-third of the belt.

Moreover, traders look forward to the release of the June acreage survey by the US Department of Agriculture this week. They expected the reading to reveal an upturn in corn plantings from the March survey and a drop in both soy and wheat.

Soybean contracts hiked 0.42% or 6.12 points to $1,527.12 per metric ton. This movement snapped a streak of four negative sessions on a round of bargain buying and short covering.

Market participants also kept an eye close to the USDA report on quarterly grain stocks as of June 1. They anticipated more extensive inventories of corn and soybean but a smaller wheat supply.

Wheat contrasts corn’s movement

Unlike corn, wheat futures edged up 1.34% or 11.90 points to $948.50 per metric ton. The contracts garnered support from bullish export data.

On Friday, the USDA cited that weekly export sales of the grain totalled 477,800 tonnes. Correspondingly, the figure is above the high end of trade forecasts ranging from 150,000 to 400,000 tonnes.

Meanwhile, Egypt has contracted to buy 180,000 tonnes of wheat from India. It is less than the previously agreed amount of 500,000 tonnes, citing a bearish price factor. Supply Minister Aly Moselhy explained that Cairo has strategic reserves of the grain sufficient for five months.