US wheat futures dipped to two-month lows on Wednesday as improving weather for developing crops in the drought-hit southern Plains put the focus back on ample world supplies, traders said. Corn futures were little changed and soyabeans were choppy as traders squared positions a day ahead of key US planting intentions and quarterly stocks reports due from the US Department of Agriculture.
As of 12:40 p.m. CDT (1740 GMT), Chicago Board of Trade May wheat was down 2-1/2 cents at $4.46-1/2 per bushel after hitting $4.44-1/2, its lowest since Jan. 25. CBOT May corn was down 3/4 cent at $3.73-1/4 a bushel while May soyabeans were up 1/4 cent at $10.19-3/4 a bushel. Wheat futures fell after rains crossed portions of the southern Plains hard red winter wheat belt this week, bolstering yield prospects for a crop that has struggled with dry conditions, in some areas since October.
The USDA on Monday rated 13 percent of winter wheat in Kansas, the top producer, in good-to-excellent condition, up from 11 percent a week earlier, although still well down from a year ago. Trade in grains was subdued as brokers awaited direction from Thursday's USDA plantings and stocks reports. Analysts expected the government to project an increase in US soyabean plantings compared to 2017 and a decline in corn acreage. Analysts also expected the USDA to show the largest US March 1 stocks on record for both corn and soyabeans, following several years of bumper harvests.
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