Tuesday, 31 March 2015 20:35
SINGAPORE/PARIS: Chicago wheat futures fell on Tuesday as traders booked profits ahead of a key government report due later in the day and after reaching a one-week peak on concerns that dry and hot weather in parts of the US Plains may curb winter crop yields.
Soybean prices edged down to hover around their lowest since March 20, pressured by the prospect of higher planting in the United States.
Chicago Board of Trade May wheat was down 0.85 percent at $ 5.25-3/4 a bushel by 1126 GMT, after hitting $ 5.31-3/4 earlier in the session, the highest since March 24. Wheat closed up 4.4 percent on Monday.
Soybean prices fell 0.44 percent to $ 9.63-1/2 a bushel, while corn eased 0.38 percent to $ 3.93 a bushel.
Wheat has added nearly 6 percent in three sessions, as worries about dryness in the US Plains offset pressure from poor US wheat exports and a stronger dollar.
The rise was further supported by the market positioning of short-term oriented market participants, Commerzbank noted.
“The majority of them are still betting on falling prices, meaning that the unfavourable weather reports from the US are likely to have resulted in short covering,” it said in a note.
Commodity funds bought a net 10,000 CBOT wheat contracts on Monday, trade sources said.
Investors in agricultural markets are focusing on a pair of US Department of Agriculture reports due at 1600 GMT Tuesday – US quarterly grain stocks and planting intentions.
Analysts expect US farmers to expand seeding of soybeans, sorghum and other crops this year at the expense of corn.
Higher US soybean planting will add to record global supplies following all-time high production in South America earlier this year, weighing on prices.
A cool April in the US southern Plains and Delta region will slow some field work, but below-normal rainfall across the main crop belt should prevent any major planting delays this spring, an agricultural meteorologist said last week.
Analysts expect the USDA to report higher March 1 stocks of wheat, corn and soybeans compared with a year ago.
Elsewhere, port workers at the Argentine grains hub of Rosario will hold a 24-hour strike on Tuesday in solidarity with a general work stoppage throughout the country on the same day over tax policy.
Copyright Reuters, 2015
