Wheat drops on good world crop weather, slack export demand

HAMBURG: Chicago wheat futures fell for a fourth consecutive session on Monday, with the market trading close to three-month lows hit on Friday as good weather across the Northern Hemisphere supported expectations of better crops.

Corn fell on selling pressure after strong gains on Friday, while soybeans were underpinned by concern about tight US supplies.

Chicago Board of Trade most-active wheat was down 0.2% at $6.25-1/4 a bushel at 1152 GMT, after hitting $6.21-3/4 on Friday, its lowest since Dec. 30, 2020.

Soybeans were marginally higher, rising 0.05% to $14.17 a bushel. Corn fell 0.4% to $5.55-1/4 a bushel.

Wheat is facing downward pressure from crop-friendly rainy weather in the United States and the Black Sea region.

"Wheat is weaker today as weather is looking favourable for crops in the US and other regions, while wheat export demand is also looking slack, with few purchase tenders in the international market," said Matt Ammermann, StoneX commodity risk manager.

"It is still early in the season, but today weather risk to wheat crops is not being seen, with rain in the US Plains expected and also in Europe and the Black Sea."

Ukrainian wheat export prices have fallen about $7 a tonne over the past week on improved harvest forecasts in the country and a drop in Russian wheat prices, the APK-Inform agriculture consultancy said on Sunday.

"Corn and soybeans are seeing some selling pressure today after their strong rises on Friday," Ammermann said. "But there is concern about tight soybean supplies in the United States which is limiting falls."

"The price spread between US and Brazilian soybeans will need to widen to conserve soybean supplies in the United States, which are looking incredibly tight after the strong exports this season."

Corn had been partly supported on Friday by large US exports to China.