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Chicago Board of Trade grain futures declined on Monday after corn touched a five-year high and soyabeans reached a one-year peak, as forecasts for rain in US crop-growing areas eased concerns about hot, dry weather. A recent warm, dry spell had fuelled worries that corn could be damaged during crucial pollination stages, after unprecedented delays in planting this spring.

However, Tropical Depression Barry is now expected to bring rain to the Mississippi Valley, Delta region and Ohio Valley, according to Commodity Weather Group. The September corn futures on the CBOT are down 9-1/4 cents, or 2.1% at $4.44-3/4 a bushel at 12:05 pm. (1705 GMT). The most actively traded contract earlier hit $4.64-3/4, the highest level since June 2014 on a continuation chart.

But the most-active contract stayed below contract highs of last month on individual September and December delivery positions. Traders are awaiting a weekly US Department of Agriculture crop report, due out at 3 pm. CDT (2000 GMT), for an update on corn conditions. The agency is expected to rate 56% of the crop in good to excellent condition, down 1 percentage point, according to a Reuters poll. Traders largely shrugged off the USDA's forecast for UScorn production in its monthly supply and demand report on July 11, holding out for a follow-up survey of plantings by the agency after its previous acreage estimates were viewed as too high for corn and too low for soyabeans.

September CBOT wheat futures were down 14 cents, or 2.7% at $5.09 a bushel after earlier touching their highest level in more than two weeks at $5.31-1/2. August CBOT soyabean futures were down 10-1/4 cents or 1.2% at $9.02-1/2 a bushel, off a $9.36-1/2 session peak that was its highest since June 2018.

Weather risks for soyabean crops in the Midwest were being weighed against demand concerns against the backdrop of a long-running US-Chinese trade dispute and pig disease in China, the world's top soya importer.

Copyright Reuters, 2019


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