Grain futures in Chicago Board of Trade declined on Thursday as corn fell to a two-year low due to favorable weather in Midwest.
September corn fell 12.75 cents, closing at 3.1675 dollars a bushel, the lowest closing level since July 2007.
Wheat future for September delivery was down 1.5 cents, settled at 5.3325 U.S. dollars per bushel. November soybean lost 14.5 cents to 8.90 dollars per bushel.
Consistently favorable weather conditions for crop development over the past few weeks and forecasted for the rest of this week and this weekend weighed on corn.
The news that China has confirmed it will sell 2 million metric tons of its corn reserves and 50,000 tons of soybeans reserves next week put additional pressure to the two grains.
Unconfirmed reports from Argentina say that their House of Representatives may meet in August to consider lowering the 35 percent tax on soybean export. Tax is the main issue that generated strikes by farmers there in 2008 and in 2009. This is considered bearish as Argentina’s lower soy export tax may reduce the international demand for the U.S. soybeans.
The wheat market was the floor leader earlier in the session as funds bought wheat and sold corn and soybean. Funds were buyers of about 3,500 contracts through late morning. However, pressured by declining corn and soybeans, wheat finished lower finally.