Corn, soy prices fall as US crop ratings improve

LONDON – US corn futures fell to their lowest level in more than two and half years yesterday weighed by the increasing likelihood of a bumper harvest in the world’s top producer as weather remained favourable and crop conditions improved.

Soybean prices also fell while US wheat edged higher in a modest rebound from the prior session’s one year low.

“Largely benign weather in the critical month of July and an equally positive outlook for August, along with improved soil moisture in the Midwest, have allayed our fears of a sudden deterioration in the weather over the summer,” Standard Chartered analyst Abah Ofon said in a market note.

“The USDA’s July yield estimates for corn and soybeans at 156,5 bushels per acre and 44,5 bpa respectively, now look achievable,” he added.

Condition ratings for US corn and soybeans edged higher in the latest week, spurred by improving crop health in Illinois, US Department of Agriculture data showed.

The USDA said good to excellent ratings, the highest ranking, for both corn and soybeans rose one percentage point to 64% as of 4 August beating market forecasts. – Nampa-Reuters