Corn and soybean markets dropped sharply, after reopening after the long weekend which saw soaking rains across the US Midwest.
"Heavy rains favoured the southern Midwest and east central plans this past weekend," said Don Keeney, at MDA weather services."The rains helped to significantly improve moisture and crop conditions for corn and soybeans," he said.Mr Keeney said further rains in the Midwest this week will "continue to build moisture," with more weather out over the 6-10 day period.Fund sellingThe wet weather eased dryness fears, which have been supporting corn and soybean markets in recent weeks."It rained, the funds are too long, there's risk off in world markets," a US broker told Agrimoney.Due to the national holiday on Monday, markets are only now reacting to the weekly commitment of trader data out on Friday evening.Although hedge funds sold corn and soybeans in the week to last Tuesday, they are still sitting on hefty long positions."Clearly our markets are still toting some rather large managed fund length, and the weather forecasts on or after the fourth of July always help to set the tone for the balance of the month," said Tregg Cronin, at Halo Commodities....MORE