August 19, 2019 / 5:51 PM / a month ago

GRAINS-Corn, soybean futures slide on beneficial U.S. weekend rains

 (Recasts with latest activity, updates prices, adds analyst
comments, changes dateline from PARIS/SINGAPORE)
    By Julie Ingwersen
    CHICAGO, Aug 19 (Reuters) - U.S. corn futures fell about
1.5% on Monday and soybean futures also declined after
much-needed rains crossed dry areas of the Corn Belt over the
weekend, bringing welcome moisture to developing crops, analysts
said.
    Wheat followed the softer trend.
    As of 12:33 p.m. CDT (1733 GMT), Chicago Board of Trade
December corn was down 5-3/4 cents at $3.75 per bushel,
but remained inside of Friday's trading range.
    CBOT November soybeans were down 13-1/2 cents at
$8.66-1/4 per bushel and December wheat was down 3-3/4
cents at $4.73-3/4 a bushel.
    Corn led the way down after weekend storms brought rain to
Minnesota, southern Iowa, western Missouri and eastern Kansas,
along with parts of Illinois, Indiana and Ohio.
    "The rain exceeded expectations in most areas, particularly
in the western Midwest, improving conditions for corn and
soybean growth," space technology company Maxar said in a note
to clients.
    The weekend showers, coupled with forecasts for more rain
this week, put the focus back on prospects for hefty U.S.
supplies.
    "So today is about taking risk premium out of the market,"
said Don Roose, president of Iowa-based U.S. Commodities.
    Ahead of the U.S. Department of Agriculture's weekly crop
progress report due later on Monday, analysts surveyed by
Reuters on average expected the government to leave its crop
ratings unchanged from last week, with 57% of the U.S. corn crop
and 54% of the soybean crop in good to excellent condition.

    Traders also await clues on harvest prospects from the Pro
Farmer Midwest Crop Tour, which began scouting fields on Monday.
The annual tour is expected to release corn yield estimates for
Ohio and South Dakota later on Monday. 
    Scouts travelling one route in northwestern Ohio on Monday
found corn yield potential was below average after a wet spring
delayed plantings.   
    The tour concludes on Thursday night in Minnesota after
scouting fields in seven states, and Pro Farmer editors are
scheduled to release their U.S. corn and soybean crop estimates
on Friday.
    Some analysts say any downward revisions to U.S. crop
expectations could have limited price impact given large global
supplies and the U.S.-China trade tussle, which has curbed U.S.
soybean exports.
    "Amid the ongoing trade disputes between the U.S. and China,
high stocks and the expectation of a high South American crop,
many market participants see no reason to believe in any lasting
price recovery," Commerzbank said in a note.
    U.S. President Donald Trump said on Sunday he was not yet
ready to reach a trade deal with Beijing, citing a buoyant U.S.
economy. 
      
    CBOT prices as of 12:31 p.m. CDT (1731 GMT):
                                   Net     Pct  Volume
                         Last   change  change        
 CBOT wheat     WZ9    473.50    -4.00    -0.8   36613
 CBOT corn      CZ9    375.00    -5.75    -1.5  115200
 CBOT soybeans  SX9    866.25   -13.50    -1.5   50370
 CBOT soymeal   SMZ9   297.20    -3.10    -1.0   22527
 CBOT soyoil    BOZ9    29.00    -0.51    -1.7   43088
   NOTE: CBOT December wheat and corn and November soybeans
shown in cents per bushel, December soymeal in dollars per short
ton and December soyoil in cents per lb.
    

 (Reporting by Julie Ingwersen in Chicago
Additional reporting by Gus Trompiz in Paris and Naveen Thukral
in Singapore
Editing by David Goodman and Matthew Lewis)
  
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