by Tom Polansek
CHICAGO (Reuters) – Futures traded in Chicago hit a daily downward limit on Tuesday, with forecasts for milder, wetter weather in the US alleviating concerns about unfavorable crop conditions.
Prices retreated after rising 12% last week with planting estimates below expectations, by the US Department of Agriculture (USDA, its acronym in English). The estimate made the market more sensitive to drought in the north and west of the US corn belt.
It has become difficult for agricultural futures contracts to have additional rally with favorable weather in the Midwest, said Rich Feltes, director of market insight for brokerage RJ O’Brien.
The USDA, in a monthly report, assessed 64% of the crop in good to excellent condition, unchanged from last week and in line with analysts’ expectations.
“There is a small issue about the wet scenario for this week that should provide beneficial rainfall for some of the driest areas in Iowa, Minnesota and the Dakotas, while also reducing risks to the region,” said Arlan Suderman, head of commodity economics from StoneX brokerage.
Corn futures fell to the daily limit of 40 cents until the contract for May 2022, with the most active, for December, closing at 5.3975 dollars a bushel.
Soybeans for November dropped 94 cents to $13.5 a bushel. December soybean meal dropped $25.9 to $362.40 a ton and December soybean oil dropped to the 3.5 cent limit to 58.78 cents per pound.
Wheat for September closed down 26.75 cents to $6.26 a bushel.
(By Tom Polansek)
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