Wheat drops for 4th session on improved US crop condition, stronger dollar
Chicago wheat prices fell on Tuesday, dropping 0.4% due to improved U.S. winter wheat conditions and a stronger dollar. Soybeans and corn also eased, pressured by a rising dollar and concerns over U.S.-Mexico-Canada trade tariffs. U.S. winter wheat conditions improved to 55% good-to-excellent, aided by timely rainfall. Meanwhile, Russia raised its 2024 grain crop forecast, and favorable weather in the EU accelerated crop sowing. In South America, higher-than-expected soybean production weighed on prices, with Brazil’s planting season progressing ahead of last year’s pace.
SINGORE, – Chicago wheat lost more ground on Tuesday, dragged down by improved U.S. winter crop condition and a stronger dollar.
Soybeans and corn eased as the U.S. dollar rose after President-elect Donald Trump said he would sign an executive order imposing a 25% tariff on imports from Mexico and Canada.
FUNDAMENTALS
* The most-active wheat contract on the Chicago Board of Trade lost 0.4% to $5.53-1/2 a bushel, as of 0136 GMT, dropping for the fourth straight session. Soybeans fell 0.2% to $9.83-3/4 a bushel and corn gave up 0.6% to $4.30-1/2 a bushel.
* U.S. winter wheat crop conditions rose for a fourth straight week, improving more-than-expected, after timely precipitation across the Plains this month, according to weekly U.S. Department of Agriculture crop conditions data on Monday.
* The USDA said 55% of the winter wheat crop was in good to excellent condition as of Sunday, up from 49% a week earlier.
* Russia’s IKAR agricultural consultancy on Monday said it had raised its overall forecast for Russia’s 2024 grain crop to 125 million metric tons from 124.5 million tons.
* Warmer and drier than average weather in most of the European Union since early last month helped farmers accelerate crop sowing and harvesting, which were delayed by heavy rainfall, the EU’s crop monitoring service MARS said.
* For soybeans, forecasts of bumper production in South America weighed on prices. Brazil’s soybean planting for the 2024-25 season has reached 86% of the total expected area as of last Thursday, well above the 74% seen last year.
* Commodity funds net bought CBOT soymeal and corn futures contracts on Monday, traders said. They were net sellers of wheat and soyoil futures contracts and net even in soybeans.
MARKET NEWS
* The dollar rallied against major peers on Tuesday after U.S. President-elect Donald Trump pledged tariffs on all imports from Canada and Mexico and additional tariffs on China.
DATA/EVENTS 1500 US Consumer Confidence Nov 1500 US New Home Sales-Units Oct
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Source Link : Livemint
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