(Reuters) – Soybean prices fell 1.1 percent on Monday as traders booked profits ahead of a U.S. government report that is expected to shed fresh light on crop conditions in the U.S. Midwest producing region.
Chicago Board of Trade soybeans had dropped 1.1 percent to $11.36 a bushel, eroding gains of 1.2 percent from the previous session. Prices logged their first weekly loss in 10 weeks last week as worries about weather conditions eased.
Although corn last week logged a sixth week of gains, the market has given up some of its weather premium. Corn was trading down 1.7 percent at $4.30-1/2 a bushel on Monday.
Both markets faced pressure last week after a report from the U.S. Department of Agriculture showed the soybean crop condition improving and the corn crop steady. Rains over the last few days and forecasts of further precipitation have weighed on prices. The next USDA report is due late on Monday.
Wheat futures were trading down 0.8 percent at $4.77-1/2 cents a bushel. Wheat futures have faced headwinds from ample world supplies and expectations for a bumper U.S. winter crop harvest.
Large speculators raised their net long position in CBOT corn futures in the week to June. 14, regulatory data released on Friday showed. Investors also trimmed their net short position in CBOT wheat and raised their net long position in soybeans.
The U.S. economy may only need one rate hike for as long as 2-1/2 years and the Federal Reserve is eroding its credibility by indicating otherwise, St. Louis Fed President James Bullard said on Friday in arguing for an overhaul of how the central bank views and discusses policy.
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