Top Stories
Top Stories
Wires

GRAINS-Corn, soybeans down even with weather improvements

Barbara Smith

* Corn, soybeans lose ground on forecasts of dry weather

* Wheat jumps as Canadian plantings come in below expectations (Rewrites throughout with U.S. market closing prices)

CHICAGO, June 26 (Reuters) - U.S. corn futures fell for the first time in three sessions and soybeans fell for a second straight day on Wednesday, with prices weighed down by forecasts of dry weather in parts of the U.S. Midwest that lifted hopes for improved crop conditions.

"This short-term warm weather can lead to a bloom for these grains," said Don Roose, president of U.S. Commodities.

Wheat turned upward as Canadian acreage numbers were released, and the numbers were lower than expected.

Chicago Board Of Trade September corn futures ended down 3-1/2 cents at $4.49-1/2 per bushel. July soybeans futures ended down 9-1/4 cents at $8.94-1/4 a bushel and September wheat futures ended with a gain of 6-1/2 cents at $5.46-1/2 a bushel.

Updated weather forecasts suggest farmers may have a chance to plant more acres of soybeans this week ahead of the next wave of storms.

Hotter temperatures over the next 10 days would also help bolster crops that have been planted, particularly corn, which is well behind the normal pace of development, forecasters said.

"This weather pattern may not be a sustained change," said Joel Widenor, meteorologist with the Commodity Weather Group. "Looking beyond the next 10 days, the weather dips again."

The U.S. Department of Agriculture (USDA) said on Monday 96% of corn and 77% of soybeans have been planted. At the same point last year, all U.S. corn acres and 93% of soybeans were planted.

The USDA also rated 56% of the U.S. corn crop in good-to-excellent condition, down from 59% last week and behind market expectations of 59%.

Some 54% of U.S. soybeans were seen in good-to-excellent condition, below expectations of 59%. The USDA said 61% of U.S. winter wheat was in good-to-excellent condition, down from 64% last week.

The agency is due to issue acreage report on Friday. This report will update planting intentions numbers from March.

Wheat prices shrugged off pressure from improved harvest weather in the U.S. Plains and Midwest, jumping to session highs after Canada's StatsCan released wheat acreage estimates that were well below trade expectations.

The market has also been supported by hot weather in parts of Europe and the Black Sea region.

Conditions for Russia's spring wheat harvest are generally good or satisfactory with only a few areas affected by a heat wave that has hit some parts of the country, state weather forecaster Hydrometcentre said on Tuesday. (Additional reporting by Naveen Thukral in Singapore, Editing by Marguerita Choy and James Dalgleish)