HAMBURG: Chicago wheat futures fell on Monday on expectations that dry, hot weather will enable good US harvesting progress and a steadier dollar also generated bearish sentiment.
Soybeans and corn also fell on expectations the US Department of Agriculture (USDA) report on US crop progress due later on Monday will give a positive picture of crop conditions.
Chicago Board of Trade most-active wheat fell 1.5% to $5.81-1/2 a bushel at 1112 GMT. Corn fell 1.1% to $4.19 a bushel, soybeans fell 1.5% to $11.12-1/2 a bushel.
Wheat’s declines were a reversal of fortunes after a rapidly weakening US dollar and strong US wheat exports lifted prices last week.
“US Midwest weather forecasts are mixed this week with heat and rain, but overall there is no fear factor from the US weather visible today,” said Matt Ammermann, StoneX commodity risk manager.
“The USDA crop report later today is likely to show positive progress with US wheat harvesting. There is also belief the USDA could also give a stable or even improved assessment of US corn and soybean crop conditions, with hot weather positive for US crops.”
The US dollar steadied on Monday after weakening rapidly last week due to expectations of US interest rate cuts.
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