CBOT corn drops to contract lows after jump in US crop ratings

CHICAGO, July 1 (Reuters) - Chicago Board of Trade corn futures fell to contract lows on Tuesday on strong U.S. crop conditions and forecasts for generally favorable weather for the U.S. Midwest, traders said.

• Short-covering and position-squaring ahead of the long U.S. Independence Day weekend lifted prices from early session lows.

• CBOT September corn CU25 settled down 3-1/4 cents at $4.06 per bushel after hitting a contract low of $4.00-1/4 during the session.

• New-crop CBOT December corn CZ25 also notched a fresh contract low of $4.16-1/2 a bushel and ended down 3-1/2 cents at $4.22.

• The March 2026 CH26 and May 2026 CK26 contracts also posted lifetime lows on Tuesday.

• The U.S. Department of Agriculture late on Monday said 73% of the U.S. crop was in good-to-excellent condition as of Sunday, above the average trade estimate and the strongest rating for this point of the growing season since 2018.

• Forecasts for warm temperatures and scattered showers in the coming days were seen as favoring crop growth as more of the crop is entering its critical pollination stage of development.

• Ample South American corn supplies continue to weigh on the market, as agribusiness consultancy AgRural raised its forecast of Brazil's total corn production on Monday. Meanwhile, Argentina's agricultural exports broke fresh records in June, data showed on Tuesday, as farmers in the key grains supplying nation ramped up shipments ahead of a tax hike that took effect on July 1.