Grain futures tumbled to multimonth lows, quickly retreating from overnight gains on the back of continuing supply pressure.
Corn prices at the Chicago Board of Trade fell to the lowest close this year on Wednesday, with the September contract falling 0.8% to $3.52 1/2 a bushel.
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Analysts expect ample rainfall in the Plains and western Midwest to ease stress on dry patches of the corn crop, increasing the likelihood of another large harvest this year. The U.S. Department of Agriculture said corn crop quality improved last week amid a positive turn in weather conditions.
Rain fell in Iowa and Nebraska on Tuesday and is expected to continue in and around those states this week and next, further aiding crops.
Wheat futures, meanwhile, fell to the lowest point in over three months. CBOT September contracts dropped 2.4% to $4.19 1/4 a bushel.
Egypt's commodity authority issued an international tender for wheat on Tuesday. Traders said that U.S. wheat wasn't offered.
Analysts said grain futures tumbled through technical support indicators in recent sessions, pushed lower after the USDA surprised market participants by forecasting larger-than-expected U.S. corn and soybean crops.
Meanwhile, soybean prices were steady. CBOT September oilseed futures closed unchanged at $9.21 3/4 a bushel.
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(END) Dow Jones Newswires
August 16, 2017 15:26 ET (19:26 GMT)