Grain and soybean futures fell Tuesday as traders booked profits on recent weather-related gains.
Excess rain across crop-growing regions of the U.S. has sparked concerns about a lasting impact on planting pace, crop condition and acreage. But the U.S. Department of Agriculture said Monday planting was progressing at a normal pace, while winter wheat condition posted a slight recovery.
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Rain is forecast to continue across some regions, but analysts say it is too early to bet on its lasting impact on the crop.
"There's not enough definitive crop news, things you can pin your hopes and dreams on," said Jim Gerlach, president of brokerage A/C Trading Co. in Fowler, Ind. "There's no appetite for taking things out of the ranges that we've established."
Corn futures for July delivery fell off a two-month high to close 1.5% lower at $3.69 1/2 a bushel at the Chicago Board of Trade.
Many farmers in the Midwest may have to replant part of their corn crop, which the USDA said was 84% in the ground as of Sunday, because of excess moisture on their fields.
"We've got more corn replanting in Indiana and Illinois than I think I've ever seen," said Mr. Gerlach. "I don't know anybody who didn't have to replant some."
Macroeconomic factors also weighed on Tuesday's trade. Crude-oil futures fell overnight before rising Tuesday morning, while the dollar rose after sinking to multimonth lows recently.
CBOT July soybean futures dropped 0.9% to $9.48 1/4 a bushel. Wheat fell 1.1% to $4.29 1/2 a bushel.
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(END) Dow Jones Newswires
May 23, 2017 15:46 ET (19:46 GMT)