CBOT wheat drops as Kansas wheat tour projects above-average crop
Wheat futures declined after a Kansas wheat tour showed robust yields. Corn fell on favorable weather forecasts, while soybeans rallied on Brazil flood concerns. Byline: Renee Hickman. Prices: July CBOT wheat down 9-3/4 cents at $6.53-1/2; July corn down 4-3/4 cents at $4.52-1/4; July soybeans up 10 cents at $12.26-1/4. Analyst Austin Schroeder noted wheat’s correction due to overbought conditions. Brazilian crop agency Emater reported grain quality reduction in flooded areas.
Wheat dips as wheat tour shows strong yield potential
Soybeans rise on worries over south Brazil floods
Planting weather pressures corn
Updates byline, prices, analyst quotes, rewrites throughout
By Renee Hickman
CHICAGO, May 17 (Reuters) -Chicago Board of Trade wheat futures dropped on Friday after a crop tour through Kansas this week projected better-than-average yields in a top U.S. winter wheat state, analysts said.
Corn also headed lower on improving U.S weather forecasts while soybeansextended gains as forecasts for more rain in southern Brazil fueled concern about crop losses to floods.
The July wheatcontract on the Chicago Board of Trade (CBOT) 24> was down 9-3/4 cents at $6.53-1/2 a bushel by 12:07 P.M. CDT (1707 GMT).
Scouts on the Wheat Quality Council’s annual wheat crop tour concluded their trip on Thursday, estimating Kansas wheat’s yield potential at 46.5 bushels per acre (bpa) after scouting 449 fields over three days. The figure was the highest since 2021 and above the five-year tour average of 42.4 bpa from 2018-2023.
Wheat futures were technically overbought and due for a correction, saidAustin Schroeder, a commodity analyst with Brugler Marketing and Management.
Futures hit 10-month highs this week on concerns about frost killing crops in Russia, the world’s biggest wheat exporter.
In corn, forecasts for a drier window in corn-growing areas over the weekend before rains arrive next week had capped prices, Schroeder said.
“I think its fairly open in terms of planting,” he said.
CBOT July corn CN24 was down 4-3/4 cents at $4.52-1/4 while July soybeans SN24added 10 cents to $12.26-1/4 a bushel.
Soybeans rose as theharvesting of soybeans, corn and rice in Brazil’s flood-devastated Rio Grande do Sul advanced slowly in the last week as relentless rains and stubbornly high waters failed to subside.
“There was a sharp reduction in grain quality in comparison to the product obtained before the excess rain,” Brazilian crop agency Emater said on Thursday.
Gains in soyoil helped boost soybeans, Schroeder said.
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