Wheat lost 0.4 percent to $7.29-1/2 a bushel, having closed down 0.2 percent on Tuesday and corn gave up 0.7 percent to $5.41-1/4 a bushel, having gained 1.8 percent in the previous session.
The US Department of Agriculture (USDA) reported a weekly decline in crop conditions and as severely hot weather was forecast for the heart of the Midwest crop belt.
The USDA confirmed a private sale of US soybeans to China in its first daily sales announcement since reporting a string of purchases by the top importer earlier this month.
Dryness over the next six months in Argentina is expected to reduce the size of the country’s two main cash crops, corn and soy while complicating navigation of grain cargo ships on the Parana River, analysts said.
Forecasters say the La Nina climate phenomenon is likely to resurface after a spotty appearance last season, bringing additional dryness to a part of South America that has already been parched for months, threatening crops, and lowering the water level of Argentina’s key grains superhighway.
Commodity funds were net buyers of CBOT corn, soybean, soyoil and soymeal futures contracts on Tuesday and net sellers of wheat futures, traders said. – Reuters
