Chicago Board of Trade (CBOT) corn veered between gains and losses on Monday as planting delays fuelled uncertainty over the size of the U.S. crop, traders. "Soybeans and wheat are also falling after the good assessment of USA sowing progress and crop conditions". "It is probably not going to be a disaster that the market was expecting but yields are going to suffer". In the crop progress reports, corn planting is expected at 80 to 85 percent complete versus 67 percent last week and 100 percent previous year. The agency rated 59% of the crop as good-to-excellent, ahead of market expectations of 54%. US farmers have sped up seeding process thanks to relatively drier weather conditions, but still below the past five year average, according to the report. Farmers have struggled with widespread planting delays due to wet weather this spring, and normally corn seeding is complete by this point in the season.
Dealers said the market had lost some ground after rising during the second half of May and early June with spillover weakness from corn and soybeans adding to downward pressure. That was up from 39% a week earlier and below the average for 88%.More news: Oil prices tumble amid surging United States crude inventories
The expected production was cut in a monthly report released Tuesday by 1.4 billion bushels to 13.7 billion bushels, the lowest since 2015.
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Chicago Board of Trade corn futures turned higher after the report was released, rallying to a one-week high.
CBOT's most active wheat contract fell 1.5 percent to $4.97 a bushel while September wheat on Paris-based Euronext was down 0.8 percent at 177.50 euros a tonne.More news: Report sent to Trump says Kellyanne Conway should be fired