Chicago soybean futures sank on Tuesday after the previous day's better-than-expected crop conditions report coupled with forecasts for rain across the U.S. Midwest as the oilseed begins to set seed pods.
Corn and wheat also fell but found support from earlier hot, dry weather that will likely cut yields.
The most-active soybean contract on the Chicago Board of Trade (CBOT) lost 33-3/4 cents to $13.19-3/4 per bushel, after falling to $13.08-3/4, its lowest level since July 6.
CBOT wheat eased 5 cents to $7.24-1/2 per bushel, while CBOT corn dropped 7-1/2 cents to settle at $5.51-3/4 per bushel.
"If we get some moisture on these beans, before they start putting pods on, we could have a really good crop," said Dan Smith, senior risk manager at Top Third Ag Marketing.
The U.S. Department of Agriculture's weekly crop progress report, released after Monday's market close, showed better-than-anticipated ratings for soybeans.
Losses Slows
Corn slowed losses, as promising crop conditions in the eastern United States were offset by drought-stricken fields in the western corn belt. The USDA rated the overall corn crop 2 points lower than the week prior and below analyst expectations.
"How good can your corn crop be, from a total production standpoint, with the Dakotas getting hammered and Minnesota being on the fence?" said Tom Fritz, commodity broker at EFG Group.
Wheat was underpinned by reduced crop prospects in North America and Russia and steady demand from leading importers, though mounting cases of the Delta variant of the coronavirus in China and the United States raised doubts over global demand. .
"The wheat market was in line for a little profit taking. I still think your wheat market has potential for higher prices," said Fritz.
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