CHICAGO: US wheat futures fell on Tuesday after a weekly government report said the recently planted winter crop was in better-than-expected shape and as a firming dollar created a headwind for the grain in export markets.
Corn prices eased along with sinking wheat as pressure from an advancing US harvest and large expected yields weighed on the market. Soybeans edged higher for a second straight day on expectations that the US Department of Agriculture will trim its US soy yield forecast in a report on Thursday.
Many traders are focusing on the monthly crop supply and demand report, which is expected to show higher corn yields, lower soybean yields and still-ample global supplies of grains and oilseeds.
Wheat gave back nearly all of its gains from Monday after the USDA late on Monday reported 55 percent of the winter crop was in good-to-excellent condition as of Sunday, up from 52 percent a week earlier and above the average analyst estimate for 53 percent.
"It doesn't take much to knock down wheat," said Jim Gerlach, president of A/C Trading.
"Condition ratings were higher and the dollar is near a three- or four-month high," he said.
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