Corn, Soybeans, Wheat Prices Slump as Rain Revives Crop Prospects in U.S.

Corn fell to the lowest price in three weeks, soybeans dropped the most since June and wheat declined for a second session on signs that rain is reviving U.S. crops threatened by dry weather earlier this month, reported “Kazakh-Zerno” IA with reference to the “Bloomberg“.
Weekend rain significantly boosted soil moisture in dry areas of the Midwest and South, said Drew Lerner, the president of World Weather Inc. in Overland Park, Kansas. Forecasts call for showers and no sustained heat over the next two weeks, which will be good for crops, Lerner said in a report. 
“Weather conditions are improving,” said Greg Grow, the director of agribusiness for Archer Financial Services Inc. in Chicago. “Farmers are going to be active sellers because they are more confident in raising a big crop.” 
Corn futures for December delivery fell 6.5 cents, or 1.7 percent, to $3.78 a bushel on the Chicago Board of Trade, after touching $3.7575, the lowest level for a most-active contract since July 1. Before today, the commodity gained 12 percent since June 29, the day before the government said U.S. farmers planted less this year than they had planned. 
Soybean futures for November delivery slipped 15.5 cents, or 1.6 percent, to $9.66 a bushel, the biggest drop for a most- active contract since June 4. The price fell 0.4 percent last week on speculation that rain would revive crops. 
Wheat futures for September delivery fell 6.75 cents, or 1.1 percent, to $5.895 a bushel, the largest decline since July 16. Before today, the grain rose 39 percent since June 9 as drought damaged crops in parts of Europe and Russia and too much rain in Canada reduced the area planted this year. 
Crop Conditions 
About 72 percent of the U.S. corn crop was in good or excellent condition as of July 18, compared with 71 percent a year earlier, the government last week. An estimated 67 percent of soybeans were good or excellent last week, unchanged from a year earlier. U.S. farmers harvested record yields last year. 
Spring wheat was rated 82 percent in the top two categories in the week ended July 18, up from 73 percent a year earlier. 
The U.S. Department of Agriculture will update its weekly assessment of the crops at 4 p.m. today in Washington, reporting conditions as of yesterday. 
The weather probably will be warmer than usual into September, and the first frosts in the upper Midwest may arrive two weeks later than usual, according to a report today from Commodity Weather Group LLC in Bethesda, Maryland. Most of the crops should reach maturity without serious stress, the forecaster said. 
“Some people are calling for small improvements in the weekly crop conditions,” Grow said. “Rising crop conditions are unusual at this time of the growing season,” which means an increase in yield potential, Grow said. 
Corn is the biggest U.S. crop, valued at $48.6 billion in 2009, followed by soybeans, hay and wheat, government figures show. 

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