Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Corn, soy plunge on U.S. weather, broad commodities sell-off

06/17/2021 | 02:19pm EDT

CHICAGO, June 17 (Reuters) - U.S. corn and soybean futures fell sharply on Thursday, pressured by outlooks for rain and cooler temperatures in the Midwest crop belt, as well as spillover weakness from broad-based selling in the commodities sector, analysts said.

Wheat followed the weaker trend, with the U.S. winter wheat harvest under way.

As of 1:08 p.m. CDT (1808 GMT), Chicago Board of Trade July corn was down its 40-cent daily limit at $6.33 per bushel. July soybeans were down $1.12 at $13.36-1/2 a bushel and new-crop November was down 88-1/4 cents at $12.55, dropping below $13 for the first time since April.

CBOT July wheat was down 24-1/4 cents at $6.38-1/2 a bushel.

Grains followed declines in crude oil and gold as the U.S. dollar rose sharply after the U.S. Federal Reserve signaled it might raise interest rates at a much faster pace than assumed.

Commodity funds hold a net long position in CBOT corn, soybean and soyoil futures, leaving the markets prone to bouts of long liquidation.

"All these outside markets - the funds (are) just exiting. The charts, certainly in beans, meal and oil, look ugly," said Dan Cekander, president of DC Analysis.

CBOT July soyoil fell by its expanded 5.5-cent daily limit to 56.57 cents per pound, nearly 9% on the day, as global vegetable oil markets retreated from multi-year highs.

Traders expect showers to bring relief to dry areas of the U.S. Corn Belt over the next two weeks, improving production prospects. Thursday's weekly U.S. Drought Monitor, prepared by a consortium of climatologists, showed severe drought across 41% of Iowa, the top U.S. corn producer and the No. 2 soy grower.

"When the market seems rain in front of it, it extracts premium accordingly," said Dan Basse, president of AgResource Co in Chicago.

Soybeans have been under pressure recently following news the U.S. Environmental Protection Agency is considering ways to provide relief to U.S. oil refiners from mandates requiring the blending of biofuels including soy-based biodiesel.

(Reporting by Naveen Thukral in Singapore and Sybille de La Hamaide in Paris; Editing by Marguerita Choy)

ę Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
CORN FUTURES (C) - CBR (FLOOR)/C1 -1.48% 550.5 End-of-day quote.13.02%
CORN?FUTURES (SETTLEMENT ONLY) (ZC) - CBR (FLOOR)/C11 0.00%End-of-day quote.0.00%
LONDON BRENT OIL 0.06% 72.4 Delayed Quote.45.28%
S&P GSCI BIO FUEL INDEX -0.19% 164.541 Delayed Quote.22.52%
S&P GSCI CORN INDEX -0.36% 454.4891 Delayed Quote.13.02%
S&P GSCI CRUDE OIL INDEX -0.86% 386.0571 Delayed Quote.46.87%
S&P GSCI SOY BEANS INDEX -1.28% 527.0465 Delayed Quote.2.92%
SOYBEAN MEAL FUTURES (ZM) - CBE (ELECTRONIC)/C1 -2.24% 349.2 End-of-day quote.-18.83%
WHEAT FUTURES (W) - CBR (FLOOR)/C1 -0.69% 724.5 End-of-day quote.13.90%
WTI 0.00% 70.42 Delayed Quote.52.97%
Latest news "Economy & Forex"
02:49aByteDance rival Kuaishou to end services of short video app Zynn this month
02:49aSpain's la liga says cvc deal values the league at 24.25 bln euros, some 90% of funds raised will go to clubs
02:46aSpain's La Liga agrees to sell 10% stake to CVC for $3.2 billion - source
02:46aSpain's la liga says it agrees in principle to sell 10% stake to cvc for 2.7 bln euros
02:44aChina's teapot refining hub seeks to stop crude quota trading
02:42aNikkei dips on Delta variant anxiety, Toyota slips after earnings
02:40aLegal & General posts 14% H1 profit rise, sees strong full-year
02:36aEEX EUROPEAN ENERGY EXCHANGE : Press Release - starts admission process for the sell-off in the national Emissions Trading Scheme (“nEHS”)
02:29aTOYOTA MOTOR : posts record profit but cautious on outlook as chip crunch weighs
02:28aSatellite firm SES lifts full-year outlook after first-half beat
Latest news "Economy & Forex"