* More favourable U.S. weather outlook weighs on soy, corn
* Slowing Chinese demand also contributes to weaker prices
LONDON, July 26 (Reuters) - Chicago soybeans dropped on
Monday to their lowest in two weeks while corn slid for a third
consecutive session, as forecasts of cooler weather in parts of
the U.S. Midwest and slowing demand in top buyer China weighed
Wheat prices also fell.
Hot, dry weather in the U.S. Midwest had raised concerns
about the outlook for crops in the key growing region for both
corn and soybeans.
"The prospect of better weather in August, as predicted by
various weather models, is causing the U.S. market to decline
despite current dry conditions," Agritel said in a note.
"The forecasts have yet to be confirmed in coming weeks, but
are pushing some traders to sell off their positions or start
taking profits," the analyst added.
The most-active soybean contract on the Chicago Board Of
Trade (CBOT) was down 1% at $13.38 a bushel, as of 1059
GMT after setting a two-week low of $13.32.
China's soybean imports are set to slow sharply in late 2021
from a record first-half tally, confounding expectations for
sustained growth from the top global buyer and denting market
sentiment just as U.S. farmers look to sell their new crop.
CBOT corn lost 0.5% to $5.40-1/4 a bushel.
The U.S. Department of Agriculture reported negative net
corn export sales for the week ended July 15, driven by the
cancellation of some sales to China.
"The market continues to worry about the cancellation of
some U.S. corn cargoes to China," Tobin Gorey, director of
agricultural strategy at Commonwealth Bank of Australia said.
Dealers said wheat prices also continued to fall with global
supplies seen remaining ample despite concerns about crops in
CBOT wheat fell 1.7% to $6.72-1/4 a bushel.
(Additional reporting by Naveen Thukral, Editing by Sherry
Jacob-Phillips and David Evans)