Corn and soybean prices decline as US crop ratings top expectations

The U.S. Department of Agriculture on Monday kept condition ratings for the nation's corn and soybean crops mostly steady from the previous week, surpassing analyst expectations in a Reuters poll of 11 analysts.

The agency pegged condition ratings for the U.S. corn crop at 67%, one percentage point below the previous week's rating. Analysts had expected a rating of 66%.

For soybeans, the agency said that 66% of the U.S. crop is in good-to-excellent condition, up a percentage point from the previous week and above analyst expectations.

Russian wheat export prices surged last week owing to difficult shipping conditions in the Black Sea and a new wave of attacks in the Strait of Hormuz, analysts said on Monday.

The Sovecon agriculture consultancy on Tuesday cut its forecast for Russia's wheat crop this year to 88.3 million metric tons, down from 88.9 million tons, citing weaker prospects in the south of the country and a smaller spring wheat area.

Chicago corn and soybean prices fell on Tuesday as better than expected U.S. crop ratings weighed on prices that hit multi-month highs in the previous session on strong demand and renewed fighting in the Middle East.

Wheat eased after rallying last week on Russian and Ukrainian attacks on grain ships and ports in the Black Sea and the Sea of Azov.

The most active corn contract on the Chicago Board of Trade (CBOT) dropped 0.4% to $4.71 a bushel by 1200 GMT, having climbed to its highest since May 20 on Monday. Soybeans Sv1 gave up 0.1% to $12.25 a bushel, having reached their highest since May 13 in the previous session.

"Crop ratings have come in better than the market expected," said one agricultural commodities trader. "U.S. weather remains the focus for the coming weeks as crops mature."