Chicago Board of Trade wheat futures fell more than 3 percent on Monday and neared a one-month low on strength in the US dollar and improving harvest weather in the US Midwest, traders said. Forecasts called for a welcome break in precipitation in the US Midwest for much of the next 10 days, which should help producers catch up with the rain-delayed soft red wheat harvest.
Ahead of the USDA's weekly crop progress report due later on Monday, analysts expected the government to show the US winter wheat harvest at 76 percent complete, potentially surpassing the five-year average for the first time this season. The dollar reached its highest in three months against a basket of currencies on expectations for higher US interest rates. A strong dollar makes US grains less attractive to those holding other currencies.
CBOT wheat posted the biggest gains, losing ground to K.C. hard red winter and MGEX spring wheat futures on spreads. Grain exports from Russia could rise by the end of this month after the Customs Service introduced an easier-to-navigate system for tax payments on sales abroad, several industry sources said. Canada's wheat and canola crops, struggling through some of the driest conditions in decades, will be the focus of a crop tour this week organised by CWB, the former Canadian Wheat Board.
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