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US corn near 3-week low on forecasts of improved weather

US corn near 3-week low on forecasts of improved weatherSINGAPORE/PARIS: Chicago corn futures lost more ground on Monday, trading at near three-week lows with the outlook for warmer weather across the US Midwest expected to boost crop development.

Soybeans slid for a fifth consecutive session to their weakest since July 9 and wheat was down to its lowest in more than three weeks, with additional pressure on commodity markets stemming for a stronger dollar.

“Perhaps the stronger greenback is finally weighing on corn prices,” Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia said in a note.

“Weather forecasters continue to expect a better turn in the weather for much of the US corn belt after widespread weekend rainfall.”

Chicago Board Of Trade September corn slid 1.1 percent to $ 4.15-1/2 a bushel after touching $ 4.11, a low since June 30.

Soybeans fell 1.2 percent to $ 10.02-1/2 a bushel and wheat gave up 1.5 percent to $ 5.45-3/4 a bushel after hitting a low of $ 5.43-1/4, its lowest since June 26. Wheat closed down 1.5 percent on Friday.

A turn to hotter temperatures across much of the US Midwest is expected benefit crops and be bearish for prices.

Rainfall late last week was seen as boosting growth potential for developing corn and soybean plants in states such as Nebraska and Iowa, which needed moisture.

Large speculators raised their net long position in CBOT corn futures in the week to July. 14, regulatory data released on Friday showed.

The Commodity Futures Trading Commission’s weekly commitments of traders report also showed that noncommercial traders, a category that includes hedge funds, increased their net short position in CBOT wheat and raised their net long position in soybeans.

The dollar hit a three-month high against a basket of major currencies on Monday, after solid US inflation and housing data supported expectations for the Federal Reserve to raise interest rates in coming months.

Copyright Reuters, 2015

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