Wheat falls for 2nd day on expectations of Russian supplies
SINGAPORE: Chicago wheat futures dropped for a second straight session on Tuesday, weighed down by expectations of higher exports from Russia in the months ahead as suppliers boost shipments ahead of potential export curbs.
Soybeans fell as hopes of a resolution to the Sino-US trade war at an upcoming meeting between the two nations were dented by US President Donald Trump.
The most-active wheat contract on the Chicago Board of Trade fell 0.5 percent to $5.59-1/2 a bushel by 0234 GMT, having closed down about 3 percent on Monday.
Soybeans lost 0.6 percent at $8.87-3/4 a bushel and corn was down 0.1 percent at $3.76 a bushel.
The wheat market is facing pressure on expectations that Russian exporters may step up grain shipments in the next few months in anticipation that the government could put curbs on exports sometime after December, traders said.
Speculation about potential export limits in Russia, the world's biggest wheat exporter, pushed global wheat prices sharply higher on Friday, adding to worries about tightening global supplies as drought has cut harvests from the Black Sea to Europe and Australia.
The Russian government has denied it discussed export curbs.
"Russia denies it is impeding wheat exports so the market, for now, relaxes," said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia.
Soybean prices were under pressure as Trump told Reuters on Monday that he did not expect much progress from trade talks with China this week in Washington.
The US Department of Agriculture lowered its condition ratings for corn and soybeans after a strong start this year. The USDA rated 68 percent of the corn crop as good-to-excellent, down from 70 percent a week earlier, and slightly behind market forecasts.
The agency said 65 percent of soybeans were in good-to-excellent condition, down from 66 percent previously.
Harvest potential for corn and soybean crops in South Dakota was up from a year ago and above average, scouts on an annual tour found.
Dry and hot weather across most Ukrainian regions may reduce the maize yield and could affect the 2019 winter grain sowing, analyst UkrAgroConsult said on Monday.
Commodity funds were net sellers of CBOT wheat, corn and soymeal futures contracts, net even in soybeans and net buyers of soyoil on Monday, traders said.