Grains-Wheat Eases on Fair Crop Conditions, Focus Turns to USDA Data

(Agriculture.com) – Chicago wheat futures fell again on Monday, giving up more of last week’s gains as investors factored in promising conditions for U.S. wheat crops and turned their attention to government forecasts expected to underscore large grain supplies.

Soybeans and corn were almost unchanged in subdued trading ahead of Tuesday’s April supply-and-demand report from the U.S. Department of Agriculture (USDA). Traders also continued to assess prospects for a U.S.-China trade agreement, which could allow U.S. soybean shipments to resume their usual pace, and the impact of Midwest flooding on planting and transport of corn.

The Chicago Board of Trade most-active wheat contract was down 1 percent at $4.63-1/4 a bushel by 1121 GMT, after earlier touching its lowest since April 2 at $4.62-1/2. CBOT soybeans inched up 0.1 percent to $8.99-3/4 a bushel while corn ticked down 0.1 percent to $3.62-1/4 a bushel. “The wheat market is under pressure as supplies look pretty good overall,” said Phin Ziebell, an agribusiness economist at National Australia Bank. “The USDA crop report will be interesting,” Ziebell said, referring to weekly crop condition data that will be released later on Monday. Last week, in its first crop condition report for this year, the USDA assessed 56 percent of U.S. winter wheat in good-to-excellent condition, up from 32 percent a year ago and topping trade expectations of 55 percent. Wheat prices were also pressured by easing rainfall in the northern U.S. Plains that reduced concerns about disruption to spring wheat planting.

Traders were still assessing potential delays to corn planting after flooding in the Midwest, with the risk that heavy showers forecast for the middle of this week could keep some fields too soggy for planting. “As more rainfall is expected into mid-April, delays to the start of the corn sowing campaign (are) to impact Nebraska, Iowa, Minnesota and portions of the eastern Corn Belt,” Refinitiv Agriculture Research analysts said in a note. The market was also weighing the consequences of flood damage to grain storage and processing sites. Last month’s deluge shut down a chunk of U.S. capacity for corn-based ethanol fuel and caused supply snags across the country.

The soybean market has been monitoring developments in trade negotiations between Washington and Beijing. Hopes last week of progress towards a deal were tempered by a lack of detail offered by the two sides at the end of the latest round of talks on Friday.

Prices at 1121 GMT Last Change Pct End Ytd Pct Move 2018 Move CBOT wheat 463.25 -4.50 -0.96 503.25 -7.95 CBOT corn 362.25 -0.25 -0.07 375.00 -3.40 CBOT soy 899.75 0.75 0.08 895.00 0.53 Paris wheat May 189.00 -0.25 -0.13 205.00 -7.80 Paris maize Jun 170.00 -0.25 -0.15 184.50 -7.86 Paris rape May 361.00 -0.50 -0.14 365.25 -1.16 WTI crude oil 63.39 0.31 0.49 45.41 39.59 Euro/dlr 1.12 0.00 0.28 1.1469 -1.95 Most active contracts – Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne.