Wheat slips back after run-up, corn and soy also down

LONDON: Wheat futures were lower on Monday as prices slipped back slightly after its recent run-up although the market remained underpinned by concerns about crop prospects in both the United States and Europe.

Corn and soybean futures were also marginally down as trade tensions between the US and China escalated.

The most-active wheat contract on the Chicago Board Of Trade (CBOT) dipped 0.7pc at $5.17-1/4 a bushel, as of 1057 GMT while September milling wheat on Paris-based Euronext fell 1.00 euro, or 0.5pc, to 187.25 euros a tonne.

Public holidays in several European countries, including France and Germany, helped to diminish activity.

"Very hot weather in some US Hard Red Winter (HRW) wheat regions over the weekend and into this week...," said Tobin Gorey, director of agriculture strategy at Commonwealth Bank of Australia.

"Crops in some of these regions are already struggling. This burst of very higher temperatures is thus unhelpful."

The European Commission on Thursday sharply lowered its forecast for common wheat production in the European Union's 27 member countries in 2020/21 to 121.5 million tonnes from 125.8 million estimated a month ago.

CBOT corn fell 0.1pc to $3.25-1/2 a bushel while CBOT soybeans were down 0.1pc at $8.40 a bushel.

Three sources told Reuters that China may reduce US agricultural imports if Washington issues a severe response to Beijing's push to impose national security laws on Hong Kong.

Dealers also noted generally favourable planting conditions in the US for corn and soybeans also added to the downward pressure on prices.

The Commodity Futures Trading Commission's weekly commitments of traders report showed that noncommercial traders, a category that includes hedge funds, increased net short positions in both CBOT corn and soybeans.