Wheat slips to two-month low as supply fears ease
“Chicago wheat futures hit a two-month low, down 0.2% at $5.90-1/4 a bushel amidst accelerated U.S. harvest and improved Black Sea region rainfall. Soybeans rose 0.4% to $11.62-1/4, while corn traded 0.4% higher at $4.45-1/2. Russian wheat export prices fell as weather concerns eased. U.S. winter wheat harvest surged to 27%, well above the five-year average. Despite mixed crop conditions, U.S. corn and soybean production remains robust.”
CANBERRA, June 18 (Reuters) -Chicago wheat futures dropped on Tuesday to their lowest levels in two months as speculators responded to an accelerating U.S. harvest and crop-boosting rainfall in the Black Sea region by selling contracts.
Corn and soybean futures edged higher.
FUNDAMENTALS
* The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 was down 0.2% at $5.90-1/4 a bushel, as of 0027 GMT, after falling to $5.88-1/2, the lowest since April 23.
* CBOT soybeans Sv1 rose 0.4% to $11.62-1/4 a bushel and corn Cv1 was trading 0.4% higher at $4.45-1/2 a bushel.
* Wheat futures surged to a 10-month high of $7.20 last month as dry conditions and frosts in Russia, the biggest exporter, pushed down harvest estimates.
* But prices have since plunged by around 18% as the U.S. harvest began pouring supply into the market and rainfall eased concerns about Black Sea crops.
* Russian wheat export prices for the new harvest have declined significantly from a week ago as concerns over the impact of bad weather subsided, analysts said.
* The U.S. Department of Agriculture said on Monday the country’s winter wheat harvest was 27% complete, up from 12% a week ago and ahead of the five-year average of 14%.
* Expectations for a record harvest in Romania should partly offset lower output in larger producers France and Germany, where torrential rain has hit crops.
* China, meanwhile, expects another bumper summer grain harvest this year, a spokesperson from the National Bureau of Statistics said.
* In corn markets, U.S. farmers are holding onto their production in the hope of better prices despite few signs of an improvement in the market.
* Weekly condition ratings for U.S. corn and soybean crops fell last week, but were still the highest for this time of the season in several years, U.S. government data show.
* In soybeans, data showed that the U.S. soy crush rebounded in May from a seven-month low in April and topped most trade estimates.
* Commodity funds were net sellers of CBOT corn, wheat and soybean futures on Monday, traders said.
Source Link: https://www.xm.com/research/markets/allNews/reuters/wheat-slips-to-twomonth-low-as-supply-fears-ease-53862271
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