GRAINS-Wheat rebounds as U.S. crop ratings decline; soybeans, corn firm
SINGAPORE, Aug 22 (Reuters) – Chicago wheat futures rose on Tuesday, recouping some of last session’s losses with a potential decline in yields following hot and dry weather in the U.S. and Europe underpinning prices.
Soybeans and corn gained more ground as adverse weather in the U.S. Midwest raised concerns over supplies.
FUNDAMENTALS
* The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 added 0.6% to $6.29-1/2 a bushel, as of 0219 GMT. Soybeans Sv1 gained 0.4% at $13.67 a bushel and corn Cv1 rose 0.1% to $4.83 a bushel.
* The condition of the U.S. spring wheat crop dropped in the latest week, the government said on Monday, as forecasts for hot and dry weather continued in the northern Plains this week.
* The stress on the high-protein spring wheat crop could add to concerns about production shortfalls in key growing areas such as Canada and the European Union.
* The European Union’s crop monitoring service on Monday reduced its forecast for this year’s average EU soft wheat, maize and rapeseed yields for a third consecutive month, and warned of a significant fall in wheat quality after summer rains.
* For soybeans and corn, extreme heat is expected across large swathes of the U.S. Midwest this week, with temperatures above 100 degrees Fahrenheit (37.8 degrees Celsius) across the U.S. Plains.
* Sweltering temperatures, combined with a lack of rain, could damage soybean crops during a crucial development window.
* However, Ohio corn yield prospects and soybean pod counts are above last year and higher than the three-year average, scouts on an annual tour of top U.S. production states found on Monday.
* U.S. corn ratings fell 1 percentage point to 58% good to excellent and soybean ratings were flat at 59% good to excellent.
* In the Black Sea region, Ukraine is considering using its newly-tested wartime export corridor for grain shipments after the first successful evacuation of a vessel along the route last week, a senior agricultural official said on Monday.
* Russia has blockaded Ukrainian ports since it invaded its neighbour in February 2022, and threatened to treat all vessels as potential military targets after pulling out of a U.N.-backed safe-passage deal for Black Sea grain exports last month.
* Commodity funds were net buyers of CBOT soybean and soymeal futures contracts on Monday, traders said, and net sellers of CBOT corn, wheat and soyoil futures contracts. COMFUND/CBT
MARKET NEWS
* U.S. Treasury yields rose to decade highs, European equities recovered from a six-week low and the Nasdaq jumped more than 1% on Monday as investors awaited a Federal Reserve meeting on Friday at Jackson Hole, Wyoming. MKTS/GLOB
DATA/EVENTS (GMT)
1400 US Existing Home Sales July
(Reporting by Naveen Thukral; Editing by Rashmi Aich)
((naveen.thukral@thomsonreuters.com; +65-6870-3829; Reuters Messaging: naveen.thukral.thomsonreuters.com@reuters.net))
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