Soybeans slip to two-week low, corn also weakens
* More favourable U.S. weather outlook weighs on soy, corn
* Slowing Chinese demand also contributes to weaker prices
By Stephanie Kelly
NEW YORK, July 26 (Reuters) - Chicago soybeans dropped on Monday to their lowest in two weeks while corn slid for a third consecutive session, as forecasts of cooler weather in parts of the U.S. Midwest and slowing demand in top buyer China weighed on prices.
Wheat prices also fell.
Hot, dry weather in the U.S. Midwest had raised concerns about the outlook for crops in the key growing region for both corn and soybeans.
"The prospect of better weather in August, as predicted by various weather models, is causing the U.S. market to decline despite current dry conditions," Agritel said in a note.
"The forecasts have yet to be confirmed in coming weeks, but are pushing some traders to sell off their positions or start taking profits," the analyst added.
The most-active soybean contract on the Chicago Board Of Trade (CBOT) Sv1 was down 0.5% at $13.45-1/2 a bushel, as of 11:23 a.m. EDT (1523 GMT), after setting a two-week low of $13.32.
China's soybean imports are set to slow sharply in late 2021 from a record first-half tally, confounding expectations for sustained growth from the top global buyer and denting market sentiment just as U.S. farmers look to sell their new crop.
CBOT corn Cv1 lost 0.9% to $5.38 a bushel. It earlier fell to $5.32-1/4 a bushel, the lowest since July 13.
The U.S. Department of Agriculture reported negative net corn export sales for the week ended July 15, driven by the cancellation of some sales to China.
"We're seeing concerns about export demand and revised expectations for exports to China," said Rich Nelson, chief strategist at Allendale, Inc.
Dealers said wheat prices also continued to fall with global supplies seen remaining ample despite concerns about crops in some areas.
CBOT wheat Wv1 fell 1.1% to $6.76-1/4 a bushel, easing on lackluster export demand for U.S. supplies and expanding harvest in the Black Sea region.
Russia's southern region of Krasnodar, one of the largest wheat producing and exporting areas of the country, has harvested a record grain crop of 12.4 million tonnes, including 10.5 million tonnes of winter wheat, its governor said on social media.
Reporting by Stephanie Kelly Additional reporting by Nigel Hunt and Naveen Thukral Editing by David Evans and David Holmes
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.