Chicago corn, wheat fall on favourable US weather, ample global supplies

BEIJING: Chicago corn and wheat futures fell for a fourth straight session on Wednesday, as favourable US crop weather boosted yield prospects, while ample global supplies weighed on demand for US shipments.

The most-active corn contract on the Chicago Board of Trade (CBOT) fell 0.2% to $4.39-1/2 a bushel by 0308 GMT.

Soybeans gained 0.2% to $11.68 a bushel, while wheat lost 0.6% to $5.99-1/2 a bushel.

Crop-friendly weather in the US Midwest has pressured the market.

Corn was 93% planted as of Sunday, and 67% was rated in good-to-excellent condition, slightly below trade expectations but still very favourable to large yields.

Wheat has been under pressure from the upcoming Northern Hemisphere harvests.

The winter crop harvest has kicked off but demand for US exports remained limited amid abundant global supplies.

Russian wheat export prices held firm last week, supported by a strong rouble and continued reluctance by farmers to sell, although analysts expect a drop in export shipments in June.

In Australia, rainfall over large stretches of parched farmland in the last few weeks has triggered a flurry of late wheat sowing, but growers are wary of a dry El Nino weather pattern in the coming months that could hit yields, farmers and analysts said.

Meanwhile, heavy and persistent rains in China’s wheat belt have affected crops, but a dramatic increase in imports is unlikely because the weather was expected and damages are manageable at the moment, analysts said.

Chinese authorities have issued a warning over the risk of winter wheat lodging in key wheat-producing regions from late Tuesday through Thursday.

In Ukraine, a major crop exporter, the combined grain and oilseed harvest is likely to rise to 83.6 million metric tons from 80 million tons in 2025 and its exportable surplus could total 50.8 million tons, Ukrainian grain traders union UGA said on Monday.