Chicago Board of Trade December corn fell 6-1/2 cents to $3.67-1/4 a bushel at 12:22 p.m. CDT (1722 GMT) and November soyabeans were down 9-1/2 cents at $8.90-1/2 a bushel, both surrendering all of their prior-session gains. CBOT December wheat dropped 6-3/4 cents to $4.82 a bushel, following corn and soya lower. Grain and soyabean markets, which had risen sharply on Monday on surging crude oil prices after weekend attacks on Saudi Arabian oil installations, focused on forecasts for above-normal US Midwest temperatures through the end of the month.
Corn and soyabean crops have been lagging their normal pace of development after rain-delayed planting this spring, and the warm weather was seen boosting crop maturity. The US Department of Agriculture (USDA) on Monday said 55% of US corn was in good-to-excellent shape, above analyst expectations of 54%. The harvest is also underway. Soyabean crop conditions slipped to 54% good-to-excellent, in line with expectations.
Demand for the expected large soya crop remained a worry. The USDA on Tuesday said private exporters reported the sale of 260,000 tonnes of soyabeans to China. It was the third daily soya sales announcement in a row involving the world's top importer, with total sales reaching 720,000 tonnes. But the sales announcement had been expected following deals for at least 600,000 tonnes last week, and US soyabean sales to China remain well behind normal.