Chicago corn and soybean futures were pounded lower on Monday, following the Independence Day long holiday weekend. Wheat was also lower.
Mostly benign weekend weather in the American Midwest, along with a generally favourable forecast for crop development put pressure on the markets amid ideas of large 2025 production. Rain fell across the Midwest on the holiday weekend, with amounts ranging from 0.16 to 1.28 inches, and one part of central Iowa receiving almost 3.5 inches. Meanwhile, the two-week outlook contains no significant heat and regular rounds of showers. Markets also fell as US President Donald Trump’s Iowa speech from last week lacked much news from a trade perspective, following chatter that there may be something announced. On the other hand, a private export sale of 135,000 tonnes of US corn (both old and new crop) was reported by the USDA this morning.
September corn fell 16 ¾ cents to $4.03 ½, and December lost 16 ¼ cents to $4.20 ¾. August soybeans plunged 24 cents to $10.31 ½, and November was down 28 ½ cents at $10.20 ¾.
Wheat was undermined by seasonal harvest pressure and news that Russia had cut its wheat export tax to zero for the first time since its introduction in 2021. The removal of the tax could mean larger wheat shipments from the world’s No. 1 exporter and increased competition for American supplies. September Chicago wheat fell 8 ¼ cents to $5.48 ½, September Kansas City lost 8 ½ cents to $5.27 ½, and Chicago spring wheat was down 17 cents to $6.12.
