Grains Tumble Ahead of USDA Report
Corn futures fell to a four-week low as investors took on risk-off trading ahead of the USDA's supply and demand report, scheduled for release on Wednesday morning. The December corn contract lost 1.25 cents to close at $4.60.5.
The USDA reported that the US corn crop is currently rated 61% good to excellent, unchanged from the previous week. However, the Pro Farmer Crop Condition Index declined by 2.28 points to 358.39, which lags behind last year's same-period rating by 24.52 points.
According to World Weather Inc., milder temperatures and periodic showers in the Midwest over the next 10 days will provide welcome relief for crops, potentially reducing stress in the northwestern Corn Belt. However, Europe is expected to continue facing dryness issues, with low soil moisture affecting central and northern France, as well as southern UK.
The technical analysis suggests that corn market bears have the upper hand in the near term, with prices trending downwards on the daily bar chart. The bulls' next upside objective is to close December prices above $4.92, while the bears aim to push below $4.40.
In soybeans, November futures fell 10.75 cents to hit a four-week low of $11.68.75. The USDA rated the US soybean crop as 62% good to excellent, down one percentage point from last week. Weather in the Midwest leans price-bearish for the soy complex.
The technical analysis indicates that a price downtrend is in place on the daily chart for November beans, with the bulls' next upside objective being to close above $12.56.5 and the bears aiming to push below $11.21.75.