Chicago wheat futures slip on forecasts for rain in US cropping regions

CANBERRA: Chicago wheat futures edged lower for a second day on Tuesday after weather forecasts

predicted better growing conditions in the US wheat belt and prices fell in Europe and Russia.

Corn futures rose slightly and soybeans fell but both remained close to Monday’s seven-week highs. All three crops were supported by a weaker dollar, making US farm goods cheaper for overseas buyers. The US dollar index is sitting near three-year lows after US President Donald Trump’s tariff policies shook global markets.

The most-active wheat contract on the Chicago Board of Trade (CBOT) was down 0.1% at $5.46-3/4 a bushel at 0353 GMT after reaching $5.56-3/4 on Friday, its highest level since March 24. CBOT soybeans for May delivery fell 0.5% to $10.36-3/4 a bushel, near Monday’s peak of $10.49-1/2, while July corn was 0.2% higher at $4.93-1/2 a bushel, having reached $4.97-1/2 on Monday.

Weather forecasts predicted much-needed rain next week in the US Plains, as well as in cropping regions in France and Germany. Around 32% of the US winter wheat crop was affected by drought as of April 8, the US Department of Agriculture said last week, up from 15% a year ago.

The USDA in a weekly crop progress report on Monday rated 47% of the US winter wheat crop in good to excellent condition, down from 48% a week earlier.

May wheat on the Euronext exchange fell on Monday to its lowest in a year, and Russian wheat export prices edged lower last week as weather for the new crop improved, according to analysts. “We’re expecting prices to move higher over the coming year,” said Commonwealth Bank analyst Dennis Voznesenski, adding that price support should come from lower ending stocks in key wheat exporting countries. US crop shipments are holding up well, with the USDA reporting weekly export inspections of wheat and corn that exceeded analyst expectations.

Traders say top global soy buyer China seems to be closed to US grain and soybeans for the foreseeable future but they hope negotiations can open US sales to other markets.