GRAINS-Wheat retreats from recent rally, but global supply woes limit losses
Chicago wheat futures slightly declined on Tuesday, retracting from a previous 6% surge, yet supported by diminished US winter crop ratings and frost damage in Russia. The most active wheat contract on CBOT slipped 0.4% to $6.86 a bushel. Soybeans also dipped 0.4% to $12.42-3/4 a bushel, while corn fell 1% to $4.56 a bushel. USDA reported a decrease in US winter wheat crop conditions, while planting progress for corn and soybeans surged.
SINGAPORE: Chicago wheat futures eased on tuesday after climbing almost 6% in the previous session, although lower US winter crop ratings and frost damage in Russia are likely to limit losses.
Soybeans and corn fell amid a rapidly advancing US harvest. downgrades likely to come in the next couple of weeks,” Commonwealth bank analyst Dennis Voznesenski wrote in a report.
The most active wheat contract on the Chicago board of trade (CBOT) was down 0.4% at $6.86 a bushel, as of 0244 GMT. Soybeans lost 0.4% to 12.42-3/4 a bushel and corn dropped 1% to $4.56 a bushel.
The US department of agriculture (USDA) lowered its US winter wheat crop condition rating to 49% “good-toexcellent” in a weekly crop progress report on monday, down 1 point from a week ago and 2 points below the average estimate. The crop’s condition was still the highest for this time of year since 2020, according to the USDA data. week than the week before, as crop damage from May
frosts led to further cuts in forecasts for this year’s harvest.
The price of 12.5% protein Russian wheat scheduled for free-on-board (FOB) delivery in June was $239 per metric ton, up from $221 per ton the previous week, according to the IKAR consultancy. Severe frosts across northern and eastern Ukraine could also reduce grain and oilseed harvests, analyst APKInform warned. In Australia, dry weather in western and southern parts of the country is threatening to shrink crops, with canola output likely to drop this year, but ample rainfall in eastern states is expected to boost overall wheat output, analysts said.
The USDA said 70% of the US corn crop was planted, as of sunday, up from 49% a week earlier and 2 points higher than the average trade estimate of 68% complete. Farmers have also finished planting 52% of their soybean crop, the agency said, up from 35% done a week ago and 3 points above the average analyst estimate. Commodity funds were net buyers of CBOT wheat, corn, soybean, soymeal and soy oil futures contracts on monday, traders said.
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