Chicago corn, soybeans, wheat slump on favorable weather

Chicago Board of Trade (CBOT) agricultural commodities closed sharply lower on Monday as funds added selling the summer row crops amid a favorable weather outlook which is set to bolster U.S. output.

The most active corn contract for December delivery dropped 19. 25 cents, or 4.78 percent, to close at 3.835 U.S. dollars per bushel. September wheat delivery lost 9.25 cents, or 1.81 percent, to close at 5.025 dollars per bushel. November soybeans shed 31.75 cents, or 3.29 percent, to close at 9.3325 dollars per bushel.

December corn Monday fell to the lowest level since it being the most active contract late June as weekend rains spread across the western corn belt and no heat is in the forecast. Corn futures prices increased about 1 dollar per bushel from mid-June to mid- July, driven by much of the eastern Corn Belt that has suffered from heavy rainfall from June to early July.

The large increase of funds positions in corn and soybeans also concerns traders. In the past month, funds accumulated a large net long position which is now being liquidated.

Soybean futures also fell sharply on Monday, weighed down by the favorable weather outlook and downbeat export data.

The U.S. weekly export inspections released by the U.S. Department of Agriculture(USDA) on Monday showed that soybean inspections through the week ending July 23 totaled 120,413 metric tons, down more than 60 percent from the prior week,; corn shipments were 1,108,281 tons, down almost 5 percent from the previous week; wheat exports totaled 439,330 tons, down about 11 percent from the prior week.

In a crop progress report expected later in the day, the conditions of the summer row crops are likely to have improved, which could further pressure prices, analysts said. Endite