SINGAPORE: Chicago wheat lost more ground on Tuesday as improved US winter crop conditions raised global supply prospects, while a stronger dollar pressured commodities.
Corn eased as the dollar strengthened after US President-elect Donald Trump said he would sign an executive order imposing a 25% tariff on imports from Mexico and Canada.
The most-active wheat contract on the Chicago Board of Trade (CBOT) was down 0.4% at $5.53-3/4 a bushel, as of 0402 GMT, marking a fourth session of losses.
Corn gave up 0.4% to $4.31-1/4 a bushel, while soybeans added 0.1% to $9.86-1/2 a bushel.
Russian wheat export prices flat last week
US winter wheat crop conditions improved for a fourth straight week, surpassing expectations, following timely rainfall across the Plains this month, according to the latest crop condition report by the US Department of Agriculture (USDA) on Monday.
The USDA said 55% of the winter wheat crop was in good-to-excellent condition, as of Sunday, up from 49% a week earlier.
Russia’s IKAR agricultural consultancy on Monday said it had raised its overall forecast for Russia’s 2024 grain crop to 125 million metric tons from 124.5 million tons.
Warmer and drier-than-usual weather across most of the European Union since early last month has helped farmers to speed up crop sowing and harvesting, which had been delayed by heavy rainfall, according to the EU’s crop monitoring service, MARS.
The dollar surged against major rivals on Tuesday after Trump said he would sign an executive order that would impose tariffs on products coming into the United States from Mexico, Canada and China.
A strong dollar makes the greenback-priced commodities expensive for importers holding other currencies.
For soybeans, forecasts of bumper production in South America weighed on prices.
Brazil’s soybean planting for the 2024-25 season has reached 86% of the total expected area as of last Thursday, well above the 74% seen last year. Commodity funds net bought CBOT soymeal and corn futures contracts on Monday, traders said.
They were net sellers of wheat and soyoil futures contracts and net even in soybeans.