(Reuters) – U.S. corn futures fell to an 11-day low on Monday and soybeans also edged lower as rains across major exporter Argentina eased heat stress on the crops.
Wheat also slipped under pressure from the weakness in corn, analysts said.
Chicago Board of Trade March corn slid 0.47 percent to $4.25-1/2 a bushel, just above the session low of $4.25-1/4 a bushel which was its lowest since December 19. Corn had firmed 0.29 percent in the previous session. March soybeans fell 0.13 percent to $13.26-1/4 a bushel, having closed up 0.65 percent on Friday.
“Soybeans and corn both rallied on Friday and with the rains in Argentina coming at an important time for crop development, the market has corrected fractionally lower,” said Garry Booth, manager of the agricultural and soft commodities desk at brokerage ICAP.
Argentina is the world’s third largest exporter of both corn and soybeans. Widespread thunderstorms over the weekend eased the threat of yield damage for both crops after prolonged hot, dry weather had supported global prices.
The U.S. Department of Agriculture (USDA) has forecast a 54.5 million tonne soy harvest and a 26 million tonne corn harvest for Argentina. Argentina’s government and main grains exchanges have yet to issue estimates for 2013/14 corn and soy.
Corn and soybeans both rallied on Friday following the release of the U.S. Department of Agriculture’s latest export sales figures, which showed better-than-expected weekly sales.
The USDA said net sales of corn for the 2013/14 marketing year of nearly 1.5 million tonnes, far exceeding trade estimates, while soybean exports of more than 720,000 tonnes also topped expectations. The USDA figures offset pressure following reports that China’s quality watchdog rejected two cargoes of dried distillers grains from the United States after detecting the presence a genetically modified strain not yet approved.
March wheat fell 0.25 percent to $6.07-1/2 a bushel, having closed 0.5 percent higher in the previous session.
