GRAINS-Corn drops 1 percent on favorable U.S. Midwest weather
* Hot, dry weather followed by rain seen bolstering corn
* Nearby soybean prices remain strong on tight supply
* Wheat sinks on good harvest weather
(Rewrites throughout, adds quotes, updates prices, changes byline and dateline, pvs dateline PARIS/SYDNEY) CHICAGO, July 15 (Reuters) - U.S. corn futures slid 1 percent on Monday as a favorable weather forecast for much of the Midwest Corn Belt eased worries that stressful summer heat would drag down yield. Wheat futures also dropped as hot, dry weather this week should allow most farmers to complete the winter crop harvest following scattered rain delays in recent weeks. Soybean prices were mixed, with nearby values supported by tight old-crop supplies and deferred prices anchored by beneficial crop weather. "You couldn't really sit down and write out a better weather scenario for the corn crop right now for most areas. There are some areas in the west that are a bit of a concern, but nothing more than we normally deal with," said Shawn McCambridge, an analyst with Jefferies Bache. A high pressure ridge moved into the Midwest over the weekend and will remain in place until mid-week, blocking moisture from moving into the region, said John Dee, a meteorologist for Global Weather Monitoring. Showers were expected on Thursday and Friday in the far northern Midwest and late in the weekend in most of the Midwest. Additional rains were expected in the bulk of the region next week, he said. "The only areas that look like they may stay dry are western Iowa and southwest Minnesota. The rest of the Midwest should receive some rain next week," Dee said. Temperatures should reach the mid-80s to low 90s (degrees Fahrenheit). "No extreme heat, pretty typical for mid-July," he said. The heat this week will boost corn crop development, and rain and milder temperatures will arrive as the crop begins pollination, a critical stage of development when severe heat and dryness can hurt yields. Crop ratings for corn and soybeans appeared unchanged this past week as improving conditions in areas east of the Mississippi River likely made up for some declines caused by heat and dryness in the west, analysts said. Chicago Board of Trade December corn fell 6 cents, or 1.2 percent, to $5.03-1/4 a bushel by 10:54 a.m. CDT (1554 GMT). CBOT August soybeans rose 22-3/4 cents, or 1.6 percent, to $14.51-3/4 a bushel, while the actively traded new-crop November contract gained just 2 cents to $12.59-1/4 a bushel. CBOT September soft red winter wheat futures fell 10 cents, or 1.5 percent, to $6.71 a bushel, while September hard red winter wheat shed 8-3/4 cents, or 1.2 percent, to $6.99-3/4 per bushel.
Prices at 11:00 a.m. CDT (1600 GMT)
LAST NET PCT YTD CHG CHG CHG CBOT corn 537.25 -8.25 -1.5% -23.1% CBOT soy 1451.50 22.50 1.6% 2.3% CBOT meal 450.80 7.90 1.8% 7.2% CBOT soyoil 46.15 -0.07 -0.2% -6.1% CBOT wheat 671.25 -9.75 -1.4% -13.7% CBOT rice 1517.00 -3.50 -0.2% 2.1% EU wheat 194.75 -3.00 -1.5% -22.2% US crude 105.96 0.01 0.0% 15.4% Dow Jones 15,478 13 0.1% 18.1% Gold 1284.36 .07 0.0% -23.3% Euro/dollar 1.3036 -0.0030 -0.2% -1.2% Dollar Index 83.1940 0.2060 0.3% 4.3% Baltic Freight 1151 2 0.2% 64.7%
(Additional reporting by Sam Nelson; Editing by John Wallace)