Chicago Board of Trade (CBOT) corn and wheat fell sharply on Tuesday, while soybeans also retreated after its two-day gains.

The most active corn contract for July delivery declined 12 cents, or 3.06 percent, to close at 3.7975 dollars per bushel. July wheat delivery declined 17 cents, or 3.49 percent, to close at 4.7075 dollars per bushel. July soybeans fell 13.75 cents, or 1. 32 percent, to close at 10.30 dollars per bushel.

The U.S. Department of Agriculture (USDA) released its Weekly Progress Report after the market closed on Monday. According to the report, Corn planted in the United States till the week of May 1 in the selected 18 states was 45 percent, higher than previous week's 30 percent, also higher than previous five-year average.

Corn emerged in the same week was rated at 13 percent, also higher than previous week and the previous five-year average.

Analysts noted that this official report has boosted expectations of more corn supply, pressing corn futures sharply lower on Tuesday.

The report also showed signs that winter wheat is in good health. According to the report, winter wheat headed in the country during the same period was 42 percent, much higher than previous week's 26 percent, also top the previous five-year average. Meanwhile, the winter wheat condition was rated at 61 percent as good or excellent, rose 2 percent from previous week.

AS for the soybeans, the report rated soybean planted at 8 percent, also higher than previous week and previous five-year average.

Profit taking also pressured corn, wheat and soybeans on Tuesday. CBOT floor brokers estimated that funds have sold 20,300 contracts of corn, 7,200 contracts of wheat and 7,200 contracts of soybeans, AgResource, the Chicago-based agriculture consultancy, reported Tuesday in its midday commentary.

Additionally, the strong dollar on Tuesday also weighed on U.S.  agriculture commodities as a stronger dollar made them more expensive, boosting hopes that export of the U.S. products may be curbed. 

Source:
courtesy of XINHUA NEWS AGENCY

by Xinhua News Agency

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