(Reuters) – U.S. corn dropped on Monday, hit by forecasts of a return to dry weather that should help planting in parts of the United States.
Soybean prices edged higher on production losses in Argentina, while wheat was little changed.
The most active corn futures on the Chicago Board of Trade fell 0.26 percent to $3.90-3/4 a bushel, having gained 0.13 percent in the previous session.
“The U.S. Midwest had an expected wet weekend. Forecasters say corn planting conditions in the U.S. will start to improve later this week,” said Tobin Gorey, director of agricultural strategy, Commonwealth Bank of Australia.
As the prospects for the U.S. crop pick up, Argentine corn exports doubled in the first quarter and further increases are expected as new government policies unleash a wave of supply onto the global market, stiffening competition for U.S. growers already hurt this season by a strong dollar.
The most active wheat futures were little changed at $4.88-3/4 a bushel, after closing up 0.62 percent on Friday.
Analysts said benign crop weather was driving investors to cut record large short positions in wheat.
The most active soybean futures rose 0.12 percent to $10.31 a bushel, having firmed 0.22 percent on Friday.
Drier conditions in the U.S. Midwest will allow corn farmers to pick up their pace of planting after being sidelined.
Rains in South America provided some support to prices last week, as excessive moisture likely destroyed some crops in Argentina.
