Wheat bounces from six-week low on bargain buying

HAMBURG: Chicago wheat futures rose on bargain hunting on Tuesday, bouncing from a six-week low that was hit as a result of a positive picture for US crops.

Soybeans and corn fell.

"Some market participants regard Monday's fall in wheat as going too far," said Matt Ammermann, commodity risk manager with INTL FCStone. "Overall the picture of US crop conditions remains positive and there have been no changes in this."

Chicago Board of Trade most-active wheat rose 0.2 percent to $4.43 a bushel at 1112 GMT. Earlier on Tuesday it had hit its lowest since March 12 at $4.39 a bushel.

Soybeans fell 0.1 percent to $8.76-1/2 a bushel, having dropped to their lowest since Dec. 26 at $8.74-3/4 a bushel. Corn fell 0.2 percent to $3.54 a bushel.

Chicago wheat futures fell more than 1 percent on Monday, pressured by generally favourable US crop conditions and expectations of abundant global supplies.

The US Department of Agriculture (USDA) rated 62 percent of the US winter wheat crop in good to excellent condition, up from 60 percent a week earlier. A year ago, the USDA rated just 31 percent of the crop as good to excellent.

In Russia, wheat export prices fell last week with prospects for the upcoming 2019 crop improving while demand weakened, analysts said on Monday.

The USDA said US farmers had planted 6 percent of their intended corn acres by Sunday, behind average trade estimates of 7 percent and the five-year average of 12 percent.

The USDA said soybean planting was 1 percent complete, compared with the five-year average of 2 percent.

"Corn sowings in the US are a little slower than expected but overall I do not think there is reason for serious concern yet when you consider the worry about waterlogged fields in the US corn belts a few weeks ago," Ammermann said.

"Soybean sowings in the US are at an early stage and I do not see reason for concern yet," he added.

Soybeans await more news about progress in the talks to end the US China trade dispute.

"As in past weeks, markets are not reacting much to speculation about possible progress in the talks but want more concrete details," Ammermann said.