Chicago wheat extends slide; corn, soy steady after lows

• Wheat remained under pressure, with the most-active wheat contract on the Chicago Board Of Trade down 0.8pc at $5.26-1/2 a bushel by 1130 GMT.
• The lack of sales in this week's Egyptian tenders dampened hopes US wheat might benefit immediately from export restrictions in the Black Sea region.

Corn edged higher, consolidating above a 3-1/2 year low touched this week, while soybeans also ticked up, holding above a four-week low struck this week.

Sharp gains for share and oil prices, as investors reacted to plans by US President Donald Trump to bring the world's largest economy out of anti-coronavirus lockdown measures, lent some support to grain prices.

However, wheat remained under pressure, with the most-active wheat contract on the Chicago Board Of Trade down 0.8pc at $5.26-1/2 a bushel by 1130 GMT.

It earlier touched a new four-week low at $5.25 and was on course for a weekly decline of over 5pc.

"Investment funds had been rather long on wheat and then you had US wheat missing out on sales to Egypt and the fact rain forecasts dissipated fears about crops in the Black Sea region," Nathan Cordier of consultancy Agritel said.

US wheat was offered at the lowest price in an international purchase tender from Egypt on Thursday, but the major importer chose grain from rival suppliers for a second time this week due to higher shipping costs.

The lack of sales in this week's Egyptian tenders dampened hopes US wheat might benefit immediately from export restrictions in the Black Sea region.

Romania last week announced a grain export ban, before saying on Thursday it was lifting restrictions on wheat shipments. Russia, meanwhile, said on Friday a grain export quota set for April-June may be exhausted by mid-May.

There have also been signs that an initial surge in demand for wheat products such as flour and pasta during lockdowns was being overtaken by a drop in out-of-home eating.

Consultancy Strategie Grains sharply increased its forecast for European Union soft wheat stocks this season as reduced demand for cereals within the EU during the coronavirus crisis outweighed an improved wheat export outlook.

"Buyers are not active in the market as they are waiting for the lockdowns to be lifted to see how much demand is there," said one Singapore-based wheat trader at an international trading company.

CBOT corn was up 0.9pc at $3.22-3/4 a bushel, while soybeans were up 0.6pc at $8.50-3/4.

US corn export sales have been steady but eclipsed by plunging demand for ethanol as lockdown orders have kept cars off the roads.

The soybean market has been grappling with the threat of reduced demand for livestock feed after several US meat factories closed due to coronavirus cases among staff.