Corn and wheat prices in Chicago slid before USDA report

Wheat and corn prices dropped in Chicago yesterday a day before the monthly USDA statement, Agritel reports.

"The economic context remains quite uncertain with doubts about the possibility of China to fulfil its commitment to buy US agricultural products," the message reads.

According to the consultancy's analysts, the firmness of the dollar versus most of other major currencies is also penalizing the markets.

The next arrival of an abundant soybean crop from South America is capping the rising potential of the soybean, they add.

"Before USDA, funds are currently shorts in corn and soybean and long in wheat, which is a bit unusual," Agritel specialists comment.

As a reminder, for the second week in a row, grain prices have been declining in the Black Sea area for both the current and next marketing year.