Wheat futures rising on bargain buying after most-active contract fell 2.3% on Monday, its biggest daily percentage drop since March 30. Strength in corn market underpins wheat.
The US Agriculture Department said that the US winter wheat crop was rated 48% good to excellent as of May 2, down 1 percentage point from a week ago.
At stake are billions of dollars and the sanctity of crop contracts in Brazil, the world's top soy exporter accounting for roughly 50% of the global trade.
Those deals are much less appealing to farmers now, as prices soared 71% from May 2020, when many were closed.
Strength in Paris milling wheat, weakness in US dollar underpin wheat futures as well as ongoing concerns about potential crop damage from cold snap in US Plains.
Choppy trading expected. Corn market underpinned by technical buying but profit-taking expected to limit gains.