Wheat poised for biggest weekly drop in a month; soy, corn firm

• Soybean and corn futures were higher in rangebound trade.
• "The market is looking for more signs of China stepping into the market and maybe building up some of their reserves," Hatchett said.

CHICAGO: US wheat futures fell on Friday and were on track for their biggest weekly slide in a month, dragged down by rising global stockpiles, improving crop prospects in Europe and strong competition for export business, analysts said.

Soybean and corn futures were higher in rangebound trade.

As of 12:58 p.m. CDT (1758 GMT), Chicago Board of Trade July wheat was down 2 cents at $5.00-1/4 per bushel. For the week, the contract was down about 4.2%.

July soybeans were up 3 cents at $8.40 a bushel and July corn was up 1-1/2 cents at $3.19 a bushel.

CBOT July wheat dipped below psychological support at the $5 mark this week, pressured by expectations for global wheat production and stocks to rise in the 2020/21 crop year.

The US Department of Agriculture this week projected that US wheat exports would decline in 2020/21 from the previous year, while exports from Russia, Australia, Canada and Argentina would increase.

Meanwhile, much-needed showers this week bolstered crop prospects in Europe, projected as the world's No. 2 wheat supplier after Russia. The soft wheat crop in France had deteriorated in the week to May 11, with 55% of crops rated good or excellent against 57% a week earlier, farm office FranceAgriMer said.

"As long as there are rains in eastern Europe and some of the European wheat-growing areas like France, it will be hard for the US market to gain its footing," said Rob Hatchett, senior economist with Doane Advisory Services.

Soybean futures found support from news that US soy processors crushed more of the oilseed than expected in April. The National Oilseed Processors Association (NOPA) said its members processed 171.754 million bushels of soybeans last month, just above an average of trade expectations for 170.483 million.

Strong production prospects for the US corn and soybean crops currently being seeded hung over the futures markets, while traders also noted uncertainty about demand from top global soy buyer China, despite a pick-up in bookings of US soybeans and corn this month.

"The market is looking for more signs of China stepping into the market and maybe building up some of their reserves," Hatchett said.

China is set to speed up purchases of US farm goods and will implement the Phase 1 trade deal signed in January with the United States, state-owned trading house COFCO said.

White House adviser Larry Kudlow said the Phase 1 trade deal "is continuing," a day after President Donald Trump suggested he could cut ties with the world's second-largest economy.