CHICAGO: US wheat futures fell on Tuesday, pressured by a government report that showed the US crop was in better-than-expected condition as it passes through key stages of development.
Soybean futures were firmer, with the market underpinned by recent export sales to China, while corn eased on pressure from the weakness in wheat.
K.C. hard red winter wheat notched the biggest decline, with the most active May contract sinking 1.7 percent to a three-week low.
In its first crop condition report for this year, the US Agriculture Department on Monday afternoon assessed 56 percent of US winter wheat in good-to-excellent condition, up from 32 percent a year ago and topping trade expectations for 55 percent.
"The crop condition report showed that wheat was much better than a year ago," said Chris Lehner, commodities broker with Archer Financial Services.
The weather outlook also boosted expectations of strong harvest yields, adding further pressure to wheat futures.
"It has gone from winter to spring overnight here," added Lehner, who is based in the top hard red winter wheat production state of Kansas. "There is plenty of moisture in the ground right now."
At 10:08 a.m. CDT (1508 GMT), K.C. hard red winter wheat for May delivery was off 7-1/4 cents at $4.27-1/4 a bushel. CBOT May soft red winter wheat, the most actively-traded wheat contract, was 2 cents lower at $4.60-3/4 a bushel.
A round of short-covering pulled wheat futures from lows hit early in the trading session.
CBOT May corn was down 1-1/4 cents at $3.60-1/2 a bushel while CBOT May soybeans were up 1 cent at $8.96-1/2 a bushel.
"I think both soybean and corn markets are getting tired about speculation over what could happen in the US/China trade negotiations and are awaiting more concrete news," said Matt Ammermann, commodity risk manager with INTL FCStone.
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