The absence of any significant weather threat to U.S. Midwest crops based on weather forecasts through mid August pressured corn futures prices Monday. Nearby September corn settled 7 1/4 cents lower at $3.64, and December corn ended 6 1/2 cents lower at $3.78 a bushel. The lack of a weather concern forced market participants to reduce risk exposure, as current weather forecasts support good crop production potential. Corn futures had previously rallied on outlooks for hot, dry weather and excessive rains in other parts of the U.S. crop belt to potentially undermine crop yield potential. However, extended weather forecasts do not pose a threat to production potential, enticing traders that previously bet on weather producing bullish price action to cover some previously bought positions. USDA weekly crop progress report showed corn at 72% good to excellent, down 1% from last week.
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