Corn, wheat fall on weather forecast; soybeans rise

Chicago Board of Trade (CBOT) agricultural commodities closed mixed on Monday with wheat, corn slipping sharply on improving weather outlook, while soybeans rising to an eight-month high despite lackluster demand and excessive supplies in cash markets.

The most active wheat contract for July delivery lost 12.5 cents, or 2.68 percent, to 4.5425 U.S. dollars per bushel. May corn delivery dropped 5.5 cent, or 1.52 percent, to 3.5675 U.S. dollars per bushel. Meanwhile, soybean for May delivery gained 11.5 cents, or 1.25 percent, to 9.2825 dollars per bushel.

Wheat prices fell to a five-week low on Monday as the U.S. weather model showed rains will return to the western Plains on Friday and expand across the entire U.S. hard red winter wheat belt through next Monday, significantly easing worries that dryness conditions would damage the crop.

Grains also came under pressure on expectations that the U.S. Department of Agriculture (USDA) on Tuesday would raise its outlook for wheat and corn stocks in this marketing year from last month's forecast, analysts said.

Meanwhile, soybean jumped to its highest levels since Aug. 12, 2015, as the currency of Brazil, a major U.S. competitor for soybean production and export, rallied against the U.S. dollar to multi-month highs on Monday.

"It appears that funds are making bullish bets in soybeans and soymeal that are tied to seasonal trends and also the political ongoings in Brazil," said AgResource company, a Chicago-based agricultural research institute.

The U.S. weekly export inspections released by the USDA on Monday showed that shipments of corn, wheat and soybean through the week ending April 7 were somehow up from the previous week, respectively. Analysts noted that the soybean and corn exports were slightly above trade expectations. Endit