GRAINS-WHEAT DROPS FOR 3RD SESSION ON EASING WEATHER CONCERNS

(Agriculture.com) – Chicago wheat slid for a third consecutive session on Tuesday to its lowest in almost one week with improved weather in parts of Australia and Europe easing supply concerns.

Soybean and corn prices bounced back following last session’s deep losses although gains were limited as rains across the U.S. Midwest boosted expectations of higher yields.

The most-active wheat contract on the Chicago Board of Trade was down 0.5 percent at $5.12 a bushel by 0255 GMT, after dropping to its lowest since June 6 at $5.10-1/4 a bushel.

Soybeans added 0.7 percent at $9.60-3/4 a bushel. The market closed down 1.6 percent on Monday, when prices touched their lowest since Jan. 12 at $9.53 a bushel.

Corn gained 0.7 percent at $3.69-3/4, having closed down 2.8 percent in the previous session.

“The market’s weather worries are still with us, even if they have been somewhat alleviated since late last week,” said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia.

“Australia remains a worry but has received some rain. Eastern Europe did get some needed rain over the weekend too. Southern parts of the Black Sea though remain a little dry.”

Farmers in the export-focused western part of Australia received beneficial rains at the end of the winter wheat planting window, although conditions remained parched in eastern states.

Grain trade association Coceral cut its outlook for the European Union’s soft wheat harvest this year, joining other forecasters in warning of stress to crops from dry weather in northern parts of the bloc.

After the market closed on Monday, the U.S. Department of Agriculture said 74 percent of the U.S. soybean crop was in good-to-excellent condition as compared with 75 percent a week ago.

The USDA said 77 percent of the U.S. corn crop is in good-to-excellent condition, slightly below 78 percent a week ago.

Traders were turning their focus to the USDA’s monthly crop supply and demand report scheduled for release on Tuesday.

Commodity funds were net sellers of CBOT corn, wheat, soybean and soymeal futures contracts on Monday and net buyers
of soyoil futures, traders said.

Trader estimates of net fund selling in corn ranged from 28,000 to 40,000 contracts.