Wheat slips further from 10-mth high on rain forecast for parts of Russia
Chicago wheat futures declined from 10-month highs amid concerns over Russian harvest estimates. Soybean and corn futures held steady after USDA report. Stronger dollar affects all three contracts. Wheat contract down 1.2% at $6.84-3/4. Russian analysts cut harvest estimates by 10 million metric tons. Rain forecasted for Russia and Ukraine. India to resume wheat imports after six years. U.S. corn and soybean planting slightly ahead. Argentinian farmers accelerating soybean sales. Commodity funds selling CBOT wheat, corn, soybeans. Global equities down, U.S. Treasury yields rise.
CANBERRA, May 30 (Reuters) -Chicago wheat futures on Thursday fell further from 10-month highs, as traders assessed whether forecast rain in parts of Russia would halt a rapid decline in harvest estimates for the world’s top exporter.
Soybean and corn futures were little changed after dipping on Wednesday following a U.S. Department of Agriculture report showing speedy planting progress in the U.S. Midwest.
Weighing on all three contracts was a stronger dollar, which made U.S. farm goods more expensive for importers with other currencies. FRX/
FUNDAMENTALS
* The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 was down 1.2% at $6.84-3/4 a bushel by 0055 GMT, while CBOT soybeans Sv1 were flat at $12.14 a bushel and corn Cv1 was 0.1% higher at $4.55-1/2 a bushel.
* Wheat prices surged to $7.20 on Tuesday, their highest since July last year, after Russian analysts cut their harvest estimates by around 10 million metric tons due to dryness and spring frosts.
* Expectations of a smaller crop in Ukraine also added to concerns about Black Sea supply.
* But weather charts suggest that rain this week should reach parts of southern Russia and Ukraine, though high temperatures could reduce its benefit to crops.
* On the demand said, India could soon begin wheat imports after a six-year gap to replenish depleted reserves and hold down prices, sources told Reuters.
* In other crops, a USDA weekly report showed U.S. corn and soybean planting was slightly ahead of the average pace of the past five years, at 83% and 68% complete, respectively.
* Argentinian farmers are meanwhile speeding up badly delayed sales of soybeans, government data show, helped by higher global prices and better weather conditions for the ongoing harvest.
* Traders said commodity funds were net sellers of CBOT wheat, corn and soybeans on Wednesday, having sharply reduced their short positions in all three contracts in recent weeks.
MARKETS NEWS
* A global equities gauge fell on Wednesday while U.S. Treasury yields rose after a third weak government debt auction in a row, and investors worried about higher interest rates while waiting for a key U.S. inflation report due on Friday. MKTS/GLOB
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