Wheat slips to lowest since April on improving supply
CANBERRA, June 24 (Reuters) – Chicago wheat futures dropped to their lowest since April due to a strengthening dollar and improved supply outlook. The most-active CBOT wheat contract fell 0.4% to $5.73-1/2 a bushel, corn futures dipped 0.3% to $4.33-3/4, and soybeans held steady at $11.20-1/2. Earlier highs of $7.20 were driven by Russia’s harvest downgrades, now revised up by IKAR amid favorable weather. US harvests are progressing, with China facing heat-related corn production challenges. Agricultural commodities saw varied investor activity.
CANBERRA, June 24 (Reuters) -Chicago wheat futures on Monday fell to their lowest since April as the dollar strengthened and the supply outlook improved, with harvests ramping up in the United States and elsewhere bringing new grain onto the market.
Corn futures also fell slightly and soybeans were flat.
FUNDAMENTALS
* The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 was down 0.4% at $5.73-1/2 a bushel by 0051 GMT after falling to $5.73, the lowest since April 22.
* CBOT corn Cv1 was trading 0.3% lower at $4.33-3/4 a bushel and soybeans Sv1 were almost unchanged at $11.20-1/2 a bushel.
* Downgrades to Russia’s harvest outlook pushed wheat prices to a 10-month high of $7.20 last month.
* But weather conditions in Russia have improved, with consultants IKAR last week raising its forecast and the country’s agriculture minister saying frosts did not have a significant impact on harvest volumes as most affected farmland has been reseeded.
* Weather conditions in other major producers such as Australia and Canada have also improved, while the U.S. harvest is advancing quickly and farmers in Ukraine have started bringing in crops.
* The U.S. dollar has risen to its highest since the start of May, making U.S. farm goods more expensive for buyers with other currencies. USD= FRX/
* The condition of France’s main wheat crop was unchanged for the second week in a row last week, although the harvest is still set to plunge this summer after a damp growing season.
* U.S. wheat export sales in the week ended June 13 were higher than trade estimates but corn sales were well below expectations, according to the U.S. Department of Agriculture.
* In corn markets, record high temperatures have swept across northwest and east China, threatening to curb production in the world’s second-largest producer and consumer of the grain.
* Commodity funds were net sellers of CBOT corn and wheat futures on Friday but net buyers of soybeans, traders said.
MARKETS NEWS
* A gauge of global stocks declined for a second straight session on Friday, weighed down by weakness in technology shares, while the dollar hit its highest level since early May as a gauge of U.S. business activity edged up to a more than two-year high.
Source Link : https://www.xm.com/research/markets/commodities/reuters/wheat-slips-to-lowest-since-april-on-improving-supply-53866019
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