Tuesday, 17 November 2015 19:09
PARIS/SYDNEY: US wheat futures fell for a third straight session on Tuesday after a government report showed an improvement in winter crop conditions, easing weather concerns and underscoring expectations of ample global supply.
Corn and soybeans rose for a second day as the markets continued to recover from contract lows last week, but a firm dollar and the arrival of large volumes from the US harvest capped gains.
Chicago Board of Trade December wheat futures fell 0.5 percent to $ 4.91-1/2 a bushel by 1228 GMT. December corn added 0.4 percent to $ 3.61-1/2 a bushel and January soybeans ticked up 0.1 percent to $ 8.60-1/4 a bushel.
In its weekly crop progress report published after the market close on Monday, the US Department of Agriculture rated 52 percent of the winter wheat crop as good to excellent, up one point from the prior week and in line with market expectations.
The data suggested that recent rainfall has benefitted crops that were sown in very dry conditions in the US Plains.
Forecasts calling for precipitation in parched wheat belts in Russia and Ukraine, along with mild temperatures that could help plant development before winter, also offset concerns that next year’s harvest in the Black Sea region could be lower.
“The good weather in Russia is weighing,” said Andrew Woodhouse, grains analyst at Advance Trading Australasia. “There is also pressure from the USDA (crop) condition report.”
Traders are monitoring weather in the Black Sea after drought in Ukraine already cut winter grain sowings, leading some market players to project a sharp drop in the country’s production and exports next season.
Soybean prices were drawing some support from brisk exports, with weekly export inspections of 2.161 million tonnes reported on Monday exceeding the high end of market forecasts.
Chicago soybean futures had slipped to a 6-1/2 year low on Monday on a continuous chart for spot prices, also moving close to last week’s contract low for January futures.
But analysts said the market could face renewed pressure if the winner of Argentina’s presidential election run-off this weekend goes ahead with plans to cut export taxes, which could prompt farmers to release some of their large stocks.
