Corn and soybean futures saw modest declines as traders anticipate the U.S. Department of Agriculture's World Agricultural Supply and Demand Estimates (WASDE) report. Improving weather forecasts across key growing regions are easing concerns about crop yields.

The market is currently weighing the potential impact of less extreme heat against the ongoing supply and demand dynamics that will be detailed in the Friday WASDE report. Investors are closely watching for any revisions to production or consumption figures that could influence price direction.

This cautious sentiment reflects the sensitivity of agricultural commodity markets to weather patterns and official supply assessments. Any significant deviations in the WASDE report from current expectations could trigger notable price volatility, affecting farmers, food processors, and global commodity traders.