PARIS/SINGAPORE: Chicago wheat futures eased for a second straight session on Tuesday as the latest US crop ratings and an increased forecast for Russia's harvest underscored ample global supply.
Corn edged down as traders waited for further indications on weather-related planting delays in the US Midwest, which had pushed prices to a 10-day high on Monday.
Soybeans also ticked lower as the oilseed market monitored prospects for a US-China trade settlement.
The most-active wheat contract on the Chicago Board of Trade was down 0.7 percent to $4.56-1/2 a bushel by 1052 GMT, after shedding 1 percent in the previous session.
"US winter wheat crops remain in largely good or better condition, much as the market expected," said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia, in a note to clients.
"(There is) nothing in this to suggest that US inventories are being reduced, so the market remains bearish."
The US Department of Agriculture (USDA) said in a weekly update after the market close on Monday that 60 percent of the US winter wheat crop was in good-to-excellent condition.
The score, in line with trade expectations, was stable compared with a week earlier and up from 31 percent a year ago.
The decent conditions for winter wheat have offset concern over adverse weather for spring wheat planting. The USDA estimated that 2 percent of spring wheat had been planted, below average trade expectations.
Favourable harvest prospects in Russia, the world's largest wheat exporter, were also weighing on price sentiment.
Russia's SovEcon agriculture consultancy said on Monday it had raised its forecast for the 2019 wheat crop to 83.4 million tonnes from 80 million.
CBOT corn was down 0.3 percent at $3.61-3/4 a bushel, after reaching a 10-day high on Monday at $3.64-1/4.
Soybeans edged 0.2 percent lower to $8.97-1/4 a bushel.
The USDA said 3 percent of the corn crop has been planted, below average market expectations.
The US Midwest endured a snow storm last week that added moisture to some areas that were flooded last month. With lighter showers forecast this week, some zones could remain too soggy for planting.
However, weather risks were being set against forecasts for hefty US corn stocks and expectations that US farmers would catch up on planting after severe weather, traders said.
In the soybean market, heavily reliant on Chinese imports, hopes for a positive outcome from US-China trade talks have underpinned prices.
However, massive disruption to China's pig sector due to African swine fever could cut demand for soymeal feed even in the event of a trade agreement with Washington.
Comments
Comments are closed for this article.