CHICAGO — U.S. grain and oilseed futures took a dive on Monday as broad-based selling and losses in other markets overshadowed concerns about unfavorable crop weather and strong export demand for American soybeans, analysts said.
Global stocks and government bonds tumbled with commodities as U.S. inflation fueled worries about even more aggressive policy tightening.
At the Chicago Board of Trade, soybean futures extended a setback after nearing a record high last week. Wheat futures turned lower after rising earlier on concerns about hot weather in Western Europe and doubts over talks to open a shipping corridor for Ukrainian grain.
“The dominant issue is the outside markets,” said Don Roose, president of broker U.S. Commodities in Iowa.
Most-active soybean futures were down 40-1/2 cents at $17.05 a bushel by 10:45 a.m. CDT (1545 GMT). Corn was down 8 cents at $7.65-1/4 a bushel, while wheat slid 6-3/4 cents to $10.64 a bushel.
Heat expected in the U.S. Midwest fueled some early worries among traders about unfavorable conditions for corn and soybeans. But some analysts said corn could benefit from a hot spell after cool, wet weather delayed springtime plantings.
The U.S. Department of Agriculture is slated to issue its weekly update on the development and condition of U.S. corn and soy crops at 3 p.m. CDT.
“The market is going to continue to be very reactive to the weather forecasts and what the rain chances are, especially as the forecasts are calling for above normal temperatures for the next two weeks,” CHS Hedging said in a note.
Traders are also monitoring talks aimed at resuming Ukrainian grain exports from the Black Sea that have been disrupted since Russia’s invasion.
“The situation in Ukraine remains the focus of concern, to which we must now add the climatic situation in Western Europe,” consultancy Agritel said. (Reporting by Tom Polansek in Chicago, Gus Trompiz in Paris and Naveen Thukral in Singapore; Editing by Rashmi Aich, Subhranshu Sahu, Amy Caren Daniel and Deepa Babington)