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GRAINS and soybeans slump due to 'greenhouse weather' in US

GRAINS and soybeans slump due to 'greenhouse weather' in US

Chicago soybean futures eased Monday as favorable weather conditions in the U.S. took the attention away from the U.S. strike on Iran that occurred over the weekend.

By 11:40 CST ( 1640 GMT), November soybeans had fallen 13-1/2 cents to $10.47 per bushel.

Chicago corn fell due to weather pressure and wheat also declined with an accelerating harvest.

Midwest Market Solutions president Brian Hoops said that the forecast for the week ending July 2 shows a warm and wet weather across the U.S. Corn Belt.

Hoops said that the weather would create a "near greenhouse effect" with benefits for corn, soybeans and other crops.

These favorable conditions have outweighed the impact of the initial surge in oil prices after the U.S. attacked Iranian nuclear sites on the weekend.

After reaching a five month high, oil prices dropped 1% on Sunday as traders assessed the impact of the U.S. Airstrikes on the transit of gas and oil through the Strait of Hormuz.

Because it is used as a biofuel to replace fossil fuel, the price of soyoil is closely linked to crude oil.

Karl Setzer, a partner at Consus Ag Consulting said that "the lack a story about the weather on the U.S. crops is more negative than any potential explosion between the U.S.

After hitting contract lows earlier, September corn fell 7-1/4 cents per bushel to $4.18-1/4.

September wheat was 13-cents lower at $5.70-12 a bushel.

Analysts predict that the weather in the United States will be favorable for harvesting wheat in the next few weeks.

Hoops said that "Hotter, drier conditions are forecast for winter wheat Plains. This should advance the harvest of winter wheat, while good rains are forecast for spring wheat belt."

Terry Reilly is a senior agricultural strategist with Marex. Renee Hickick in Chicago; Additional reporting by Ella Cao, Lewis Jackson and Sybille De La Hamaide in Beijing and Paris; Editing and production by Jan Harvey

(source: Reuters)