U.S. Corn Futures Hit Two-Week Low; Soy Slides, Wheat Steadies

By Julie Ingwersen

CHICAGO, July 28 (Reuters) – U.S. corn futures hit a two-week low on Monday and soybeans also fell as market players continued to brace for large crops and forecasts called for milder, non-threatening weather in the Midwest production belt.

U.S. wheat futures pared losses and turned higher at times, gaining against corn and soybeans on inter-market spreading.

On the Chicago Board of Trade as of 12:28 p.m. CDT (1728 GMT), benchmark December corn futures CZ25 were down 4-1/2 cents at $4.14-1/2 per bushel after dipping to $4.12-3/4, the contract’s lowest level since July 14.

New-crop CBOT November soybeans SX25 were down 7-1/4 cents at $10.13-3/4 a bushel while CBOT September wheat WU25 was up 1 cent at $5.39-1/4 a bushel.

Much of the U.S. Corn Belt has received timely rains in recent weeks but warm temperatures, particularly at night, have raised concerns about potential crop stress. Forecasts called for cooler weather by midweek, pressuring corn and soybean futures.

“A week ago, there was talk of (corn) pollination issues because it was so hot and steamy … but that has fallen on deaf ears for now,” said Tom Fritz, a partner with EFG Group in Chicago. “There is really no threatening weather out there.”

The USDA was scheduled to release updated weekly U.S. crop condition ratings later on Monday.

Additional market pressure stemmed from weekend news that Argentina’s government announced a reduction in export taxes on agricultural goods including soybeans and corn. Argentina is the world’s No. 3 corn exporter and the largest supplier of soymeal and soyoil.

On tariffs, the United States and European Union struck a framework trade agreement on Sunday, imposing a 15% import tariff on most EU goods and averting a bigger trade war between the two allies that account for almost a third of global trade.

Meanwhile, top U.S. and Chinese economic officials resumed talks in Stockholm to resolve longstanding economic disputes at the center of a trade war between the world’s top two economies, aiming to extend a truce by three months.

The USDA reported export inspections of U.S. soybeans in the latest week at 409,714 metric tons, in line with trade expectations, while U.S. corn export inspections topped expectations at more than 1.5 million tons. Weekly wheat inspections, at 288,793 tons, fell below trade expectations. USDA/I

(Reporting by Julie Ingwersen in Chicago; Additional reporting by Michael Hogan in Hamburg and Ella Cao and Lewis Jackson in Beijing; Editing by Matthew Lewis)