Wheat eases, but US drought keeps prices near two-year high

SINGAPORE: Chicago wheat slid on Monday, giving up some of its recent gains, although a severe drought across the US winter crop areas kept prices close to a two-year high.

Soybeans rose on expectations of planting delays in the US Midwest, while corn ticked lower.

“Wheat prices are slightly lower today, but supply risks from US drought are likely to support prices,” said one grains trader in Singapore.

“We also have some worries about planting in Australia due to dryness.”

The most-active wheat contract on the Chicago Board of Trade (CBOT) fell 0.4% to $6.35-1/4 a bushel, as of 0312 GMT, having climbed to its highest since mid-2024 on Wednesday.

Soybeans added 0.5% to $12.09-3/4 a bushel and corn fell 0.1% to $4.80 a bushel.

On Wednesday, the wheat market hit its highest since mid-2024 on worries about drought threatening yields in the US Plains.

Weather concerns also supported corn and soybeans, with some farmers in the central and eastern US grain belt yet to begin planting due to wet, cold conditions, traders said.

A sharp rise in fertiliser costs due to the Iran war is threatening to cut farm output, adding support to prices.

Large speculators raised their net long position in CBOT corn futures in the week to April 28, regulatory data released on Friday showed.

The Commodity Futures Trading Commission’s weekly commitments of traders report also showed that noncommercial traders, a category that includes hedge funds, trimmed their net short position in CBOT wheat and cut their net long position in soybeans.