GRAINS-Chicago corn drops to more contract lows as heavy supply weighs

By Heather Schlitz

CHICAGO, June 25 (Reuters) - Chicago Board of Trade front and back-month corn futures notched lifetime lows on Wednesday on expectations of a hefty Brazilian corn crop and a lack of weather threats for the large U.S. corn crop that has recently been seeded, traders said.

CBOT corn, soybean and wheat futures also felt selling pressure ahead of the first notice day for the July contracts and the U.S. Department of Agriculture's closely-watched crop progress and quarterly stocks reports on Monday. USDA/EST

"Everything is in a free fall right now," Tom Fritz, broker at EFG Group, said.

CBOT September corn CU25 was last down 4 cents to $4.07-1/2 per bushel as of 11:30 am CT (1630 GMT). It earlier fell to its lowest point on a continuous chart since October, 2024, at $4.12-1/2, marking the latest in a series of lows for corn this month.

CBOT August soybeans SQ25 were down 13-3/4 cents to $10.36-3/4 per bushel to fall for a fourth session. CBOT September wheat WU25 eased 6-1/4 cents to $5.29-3/4 a bushel to drop for a third day in a row.

Warm, rainy weather in the U.S. Midwest is expected to aid crop development for the nascent corn and soy crops in the coming days, creating a greenhouse-like effect.

"When you buy a plant out of a greenhouse it's green and healthy. That's what's happening in the Midwest," Fritz said.

Expectations of ample global supply for corn and wheat have also added heavy pressure to prices.

In Brazil, farmers are estimated to produce a record 123.3 million metric tons of their second corn crop, agribusiness consultancy Agroconsult said on Tuesday.

Wheat remained curbed by a strong production outlook across the Northern Hemisphere where harvesting is under way.

Consultancy Sovecon said on Wednesday it had slightly raised its forecast for 2025 Russian wheat production, citing improved crop conditions in parts of central Russia, as it joined other analysts in raising its outlook for the crop.