U.S. grains: Wheat falls on rain in growing regions
Chicago wheat prices fell for a third straight session on Tuesday, pressured by rains in the U.S. Plains improving crop conditions. Corn also eased due to favorable prospects in Brazil and a stronger dollar, while soybeans edged higher after President Trump paused EU tariff threats. Wheat closed at \$5.28/bushel, corn at \$4.59, and soybeans at \$10.62.
Chicago | Reuters—Chicago wheat fell for a third straight session on Tuesday, as rain in growing areas of the U.S. Plains improved moisture for the crop, reinforcing expectations of a well-supplied market, according to analysts.
Corn also eased, curbed by a bounce in the dollar and favorable crop prospects in Brazil, while soybeans rose as U.S. President Donald Trump backed off on European Union tariff threats.
Chicago futures resumed trading on Tuesday after a holiday closure on Monday for Memorial Day in the United States.
The most active wheat contract on the Chicago Board of Trade (CBOT) Wv1 settled down 14 cents to $5.28-1/2 a bushel, moving further back from last week’s one-month peak.
Wheat rallied last week as worries over adverse weather triggered a bout of short-covering at a near five-year low of $5.06-1/4 hit earlier this month.
But recent days have seen helpful rain in the central and southern U.S. Plains, as well as in dry parts of Europe and the Black Sea region, according to weather forecaster Vaisala.
“‘Rain makes grain’ is the general sentiment out there,” said Jim Gerlach, president of A/C Trading.
Traders were awaiting the U.S. Department of Agriculture’s weekly crop report later on Tuesday to see if U.S. winter wheat conditions continued to improve last week.
The U.S. dollar regained some ground after Monday’s one-month low against a basket of major currencies, eroding the competitiveness of U.S. grain overseas. USD/
CBOT soybeans Sv1 added 2-1/4 cents to finish at $10.62-1/2 a bushel and corn Cv1 ended flat at $4.59-1/2 per bushel.
Corn and soybeans were pressured by expectations of a large corn and soybean crop in Brazil, with agribusiness consultancy Datagro increasing its forecasts for the country’s 2024/2025 crops.
Grains drew some support however, from a steadier trend in wider financial markets, including crude oil, as investors digested Trump’s postponement of the threatened EU tariffs.
But volatile headlines on tariffs have resulted in many investors moving into the equities market and away from perceived risk in grains, Gerlach said.
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Source : The Western Producer
