Wheat drops for 2nd session, soybeans ease on improved US crop ratings
SINGAPORE, July 18 (Reuters) – Chicago wheat futures slid 1.6% on Tuesday, while soybeans lost ground as better-than-expected condition of both crops in the United States weighed on prices.
Corn fell for a second straight session.
FUNDAMENTALS
* The most-active wheat contract on the Chicago Board of Trade (CBOT) fell 1.6% to $6.43 a bushel, as of 0007 GMT, and soybeans gave up 0.5% to $13.71-1/2 a bushel. Corn lost 0.5% to $5.03-1/2 a bushel.
* Weekly condition ratings for the U.S. soybean and spring wheat crops improved more than expected in the past week following rains in portions of the Midwest and Plains, U.S. government data showed on Monday, while corn ratings rose in line with trade expectations.
* The U.S. Department of Agriculture (USDA) rated 55% of the soybean crop as good to excellent in its weekly crop progress report, up 4 percentage points from a week ago and above a range of trade expectations.
* For spring wheat, the USDA rated 51% of the northern Plains crop as good to excellent, up from 47% the previous week and above a range of trade expectations.
* The agency rated 57% of the corn crop as good to excellent, matching the average analyst estimate and up from 55% the previous week.
* Wheat and corn markets shrugged off news on the Black Sea grain deal, which expired on Monday.
* The deal allowing the safe Black Sea export of Ukraine’s grain for the past year expired after Russia quit and warned it could not guarantee the safety of ships in a move the United Nations said would “strike a blow to people in need everywhere.”
* Moscow had previously threatened to leave over what it called a failure to meet its demands to implement a parallel agreement easing rules for its own food and fertilizer exports.
* Analysts said there are still expectations the deal may be renewed, and the markets were well aware of the risk for it to expire.
* Moscow said it would consider rejoining the pact if it saw “concrete results” on its demands but that its guarantees for the safety of navigation would meanwhile be revoked.
* In other news, U.S. soybean processors crushed fewer beans than expected in June as the monthly crush slumped to a nine-month low, the National Oilseed Processors Association (NOPA) said.
* Brazilian farmers had harvested 36% of the area planted for their second corn crop in the center-south region by the end of last Thursday, consultancy AgRural said on Monday, up 9 percentage points from the previous week.
* Commodity funds were net sellers of CBOT corn, wheat and soyoil futures contracts on Monday, and net buyers of soybean and soymeal futures, traders said.
MARKET NEWS
* U.S. stocks rose on Monday on expectations corporate earnings will exceed forecasts, but global shares and the dollar traded little changed after data showed the Chinese economy grew slower than anticipated.
DATA/EVENTS (GMT) 1230 US Retails Sales MM June 1315 US Industrial Production MM June (Reporting by Naveen Thukral; Editing by Subhranshu Sahu)
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