Chicago corn and soybean futures fell sharply on Friday to retreat further from multi-month highs seen last week, pressured by negative economic sentiment and weather forecasts showing greater chances for rain relief in parched Midwest crop belts.
Wheat was also lower.
US Drought
The worst U.S. Midwest drought since 2012 expanded over the past week despite mild temperatures, climatologists said in a weekly report.
However, latest weather projections pointed to significant rain in parts of the Midwest in the week ahead, raising hopes of beneficial moisture for corn and soy crops before key growth stages this summer.
"These (dry) conditions have not... irreversibly impacted corn and soybean yields until now. Everything will depend on the weather evolution in the next three weeks," consultancy Agritel said.
The most-active corn contract Cv1 on the Chicago Board of Trade (CBOT) was down 2.5% at $6.05-1/2 a bushel by 1010 GMT, after hitting a two-month high on Wednesday.
CBOT soybeans Sv1 were down 1.6% at $13.18-3/4 a bushel, while wheat futures Wv1 gave up 1.2% to $7.44 a bushel.
Lower crude oil and share prices also weighed on grains as investors focused on rising interest rates and faltering economic growth.
Overseas Demand
Sluggish overseas demand for U.S. grains had helped pushed prices lower last month before the recent weather rally.
Participants were also monitoring developments in the war-disrupted Black Sea export zone.
Russia is 99.9% certain to quit a U.N.-brokered deal on the safe passage of Black Sea grain next month, a senior Ukrainian diplomat said.
Read More: French Soft Wheat Crop Rating Steady At Decade High
News by Reuters, additional reporting by ESM – your source for the latest supply chain news. Click subscribe to sign up to ESM: European Supermarket Magazine.
