CHICAGO: Chicago benchmark wheat futures fell nearly 3% on Monday, snapping a seven-session rally as the crop outlook in Russia improved on forecasts for rain, analysts said.
The Chicago Board of Trade’s most active wheat contract was down 18-1/4 cents at $5.85 a bushel by 1600 GMT. On Friday, it hit its highest since Dec. 29, supported by concern that adverse weather in exporters Russia, Europe and the US could stress crops.
“That little indication of possible rain in Russia after a rally was enough to spook people,” Brian Basting, an analyst at Advance Trading, said.
Despite the tumble, Chicago wheat futures remain above the 100-day moving average, while Kansas City wheat futures were little changed as a weekly report showed more of top wheat growing state Kansas in drought, supporting hard red winter wheat prices.
Soybean futures gained support from a strike by oilseed workers in Argentina, while corn futures ticked down on spillover weakness from wheat.
Soybeans rose 3-1/2 cents to 11.63 a bushel and corn fell 2-1/2 cents to $4.37-1/2.
Traders liquidating positions ahead of the notice day for the May contract also adds downward pressure to the market, analysts said.
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