Corn and wheat futures dropped to 12-week lows on Wednesday, retreating sharply from early May highs as supply worries have faded in the face of improving weather and a stronger-than-expected planting season.
"People thought we were going to have a major planting problem," said Randy Mittelstaedt, director of research at R.J. O'Brien. "But the cool and wet conditions have turned warmer and wet, which means that the corn crop is going in with very good conditions, and that has turned the whole thing around."
After touching 10-month highs, then, corn futures have fallen below $4.70 per bushel.
"Some of the bulls had hoped the crop would be late, that it would be put into duress—that's just not going to happen," said Dennis Gartman of the Gartman Letter on Tuesday's "Futures Now." "You could be looking at corn with a three-handle without too much difficulty."
When it comes to wheat, the situation is a bit different.
"The rally on wheat crop concerns was completely justified, because of the severe damage to the hard red winter wheat crop," wrote Chip Flory, editor and publisher of Pro Farmer Newsletter, in an email to CNBC. "The problem is, the rest of the world grows wheat, too! And competing exporters generally have a good supply and a price that is cheaper than U.S. wheat, so the slump in U.S. prices is tied to a lack of demand."