Chicago agricultural commodities drop as weather improves

Chicago agricultural commodities dropped across the board Monday on favorable weather forecast. The most active corn contract for July delivery fell 8 cents, or 1.58 percent, to close at 4.995 dollars per bushel. July wheat lost 7.5 cents, or 1.04 percent, to close at 7.15 dollars per bushel. July soybeans shed 21.75 cents, or 1.46 percent, to close at 14.6525. Funds were active sellers on agricultural market Monday as favorable weather in Central U.S. has facilitated corn and soybean seeding. Favorable weather is generally expected over the next two weeks, and may include some much needed rain for the U.S. western Plains in the 10 to 12 day period. With El Nino rapidly advancing, the chance of dire summer heat or dryness is sharply curtailed for June and July. Besides weather, other factors available Monday also pointed to dampen agricultural crops. With corn crop advancing into maturity in potentially record corn yield, Brazil is offering its corn crop aggressively; Chinese wheat enjoyed soaking rains in recent days and Chinese farmers may embrace record wheat harvest of 126-130 million tonnes in 2014. As a result, China is not expected to return to the world wheat market for high quality wheat milling needs; Australian farmers are active in seeding wheat in favorable soil moisture. U.S. weekly export inspection report released Monday was considered supportive of agricultural crops but failed to do so. The report showed that for the week ending May 8, U.S. exported 22. 9 million bushels of wheat, 47.1 million bushels of corn, and 8.8 million bushels of soybeans, and all three exports data were above trade expectations.