CBOT soybean, grain futures drop on expectation of positive U.S. crop report
Traders think weather damage in western U.S. Corn Belt limited
Strength in U.S. dollar weighs on grain, soy commodities
Recent hot, dry weather could help U.S. wheat harvest
Adds analyst comments, adds bullets, updated headline, changes byline/dateline from HAMBURG, updates prices as of 1541 GMT
By P.J. Huffstutter
CHICAGO, July 8 (Reuters) -Chicago Board of Trade soybeans and corn futures on Monday dropped to around the lowest in four years, as traders expected a positive picture of U.S. crop progress from the U.S. Department of Agriculture (USDA) report due later in the day.
Traders expected only isolated crop damage from a recent spate of hail, heavy rainfall and extreme flooding across parts of the western Corn Belt, not widespread problems, said Angie Setzer, partner at Consus Ag.
"Traders continue to repeat the adage 'rain makes grain'," she said.
Both old-crop July CN24 and September CU24 corn contracts dropped below the key psychological level of $4 per bushel, while the most-active soybean contract Sv1 slumped to the lowest price seen since November 2020.
Meanwhile, wheat futures also turned sharply lower, amid market expectations that recent dry, hot weather will enable good U.S. harvesting progress.
"The USDA crop report later today is likely to show positive progress with U.S. wheat harvesting," said Matt Ammermann, StoneX commodity risk manager.
Strength in the U.S. dollar .DXY also cast a bearish pall over grain and soybean futures on the session, as a stronger dollar tends to make U.S. commodities less attractive on the export market.
Wheat futures also turned sharply lower on expectations that recent dry, hot weather will enable good U.S. harvesting progress.
Chicago Board of Trade most-active wheat Wv1 was down 3.3% to $5.71 a bushel at 1542 GMT. Corn Cv1 fell 3.71% to $4.08-1/4 a bushel, and soybeans Sv1 fell 2.99% to $10.96 a bushel.
Weather has improved in major exporters Russia, the United States and Canada in recent weeks, and an abundance of corn is also dragging on wheat prices, said Rabobank analyst Vitor Pistoia.
Additional reporting by Michael Hogan in Hamburg and Peter Hobson in Canberra; Editing by Mrigank Dhaniwala, Janane Venkatraman, David Evans and David Gregorio
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