US wheat futures fell 1.9 percent on Tuesday, their fifth decline in the last six sessions, as investment funds cut their risk exposure to the grain following a surprise short-covering rally on Monday, traders said. Poor demand for US wheat exports amid expectations of a jump in winter wheat plantings in the US Plains added to the bearish tone.
"In spite of all this world production decline talk, we are still not seeing any exports come to the United States," said Dan O'Bryan, risk management specialist and broker at Top Third Ag Marketing. Export concerns, highlighted by a fresh cancellation of a deal for US supplies, also weighed on the soyabean market while corn was close to unchanged.
Traders were squaring up positions ahead of a key US Agriculture Department report on Wednesday that will provide the government's latest estimate of the size of the upcoming US corn and soyabean harvests. At 11:18 a.m. CDT (1618 GMT), Chicago Board of Trade December soft red winter wheat futures were down 10-1/4 cents at $5.18 a bushel.
Ukraine increased its 2018 grain harvest forecast to 63.1 million tonnes from a previous estimate of at least 60 million tonnes, the acting agriculture minister said on Tuesday. The country expects grain exports will rise to 42 million tonnes in the 2018/19 marketing year. CBOT November soyabean futures were down 8-1/2 cents at $8.36-3/4 a bushel.
The USDA on Tuesday morning said private exporters reported the cancellation of sales of 192,000 tonnes of soyabeans for delivery to unknown destinations during the 2018/19 marketing year. CBOT December corn was off 3/4 cent at $3.66-1/2 a bushel. Analysts were expecting the USDA to trim its estimate of US corn yields on Wednesday but the harvest outlook would still forecast a bumper crop.