US wheat futures declined on Tuesday as rains in the southern Plains breadbasket boosted prospects for the region's drought-hit winter wheat crop, analysts said. Corn and soyabean futures drifted lower, with traders reluctant to stake out new positions ahead of key data due this week from the US Department of Agriculture (USDA). The government was scheduled to release its US planting intentions and quarterly grain stocks reports on Thursday.
As of 12:40 pm CDT (1740 GMT), Chicago Board of Trade May wheat was down 5 cents at $4.49-1/4 per bushel. May corn was down 1-1/2 cents at $3.72-1/2 a bushel and May soyabeans were down 4-3/4 cents at $10.20-3/4 a bushel. Wheat futures fell the most on a percentage basis on improving weather in the southern Plains, where winter wheat has resumed growth after its winter dormancy, a time when the crop tends to require increased moisture.
The USDA on Monday rated 13 percent of winter wheat in Kansas, the top producer, in good-to-excellent condition, up from 11 percent last week. However, ratings are down significantly from a year ago, when 38 percent of the state's wheat was rated good to excellent. Showers this week could help to recharge soil moisture. CBOT corn and soyabeans declined as traders adjusted positions ahead of Thursday's USDA reports. Funds hold a net long position in both commodities, leaving those markets vulnerable to long liquidation.
Analysts expect the government to project US soyabean plantings for 2018 at a record-high 91.1 million acres and corn plantings at 89.4 million acres, down from 90.2 million in 2017. Analysts also expect the USDA to report record-high March 1 corn and soyabean stocks, reflecting several years of bumper harvests.
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