HAMBURG: Chicago wheat futures fell on Tuesday to their lowest in almost a month, still under pressured from a forecast on Friday of a larger-than-expected planted area for US winter wheat.
Soybeans climbed to a one-week high, recovering from four-month lows hit on Friday, while corn rebounded on buying interest after hitting life of contract lows on Friday.
Markets had been closed on Monday for a public holiday in the United States.
"Wheat is still suffering something of a hangover from the forecast from the U.S Department of Agriculture (USDA) on Friday of an unexpectedly large US planted area for winter wheat," said Graydon Chong, senior commodity analyst with Rabobank.
"Soybeans and corn are seeing support from fear about poor crop weather in South America, especially Argentina, a factor which is also supporting soymeal."
Chicago Board of Trade March wheat was down 0.7 percent at $4.17-1/4 a bushel at 1125 GMT, after earlier hitting $4.17, the lowest since Dec. 20.
March soybeans rose 0.6 percent to $9.66 a bushel, after hitting their highest since Jan. 9 at $9.67-1/2 a bushel. March corn rose 0.3 percent to $3.47-1/2 a bushel, having hit a contract low of $3.45-1/2 on Friday.
Wheat slumped almost 3 percent on Friday after the USDA estimated 2018 US winter wheat plantings at 32.608 million acres, above analyst expectations for 30.1 million to 32 million acres. European wheat has also hit contract lows.
The USDA raised its estimate for US corn production due to record-large yields but trimmed its estimate for the US soybean harvest, even though the US soybean crop would still be the biggest ever.
"The USDA's estimate of US wheat plantings was more expansive than thought and would create more supplies in a market suffering from large world stocks," Chong said. "There has been concern about the impact of cold winter weather in the US but the actual result of this will not be seen for some time until closer to the harvest."
"In soybeans and corn, attention is turning to fear of unfavourable crop weather in parts of South America. Dryness is starting to cause some concern about soybean crops in Argentina, the world's largest soymeal exporter."
"The market is also assessing the impact of current prices on soybean and corn plantings. We could even see US soybean acres planted this season exceed corn for the first time ever."
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