Wheat extends 3-day losses to 4 pct, but supply concerns persist
Category: Grains
(Reuters) – U.S. wheat futures fell for a third straight session on Monday, extending three-day losses to nearly 4 percent as traders squared bullish positions on easing worries over any immediate threat to exports in Ukraine.
Corn prices rose, rebounding from losses of 2 percent on Friday, while soybeans climbed for a second session.
Chicago Board of Trade September wheat futures fell 0.59 percent to $5.46 a bushel, having closed down 2.2 percent on Friday.
“There were some concerns about the Ukraine situation going into the weekend, whether it would escalate, but there was no new major development that would rally the wheat market,” said Avtar Sandu, senior manager for commodities at Phillip Futures.
Worries about tensions between Russia and Ukraine, plus concern about poor quality in the western European harvest, had sparked short-covering in Chicago, pushing prices to a one-month high last week.
But a lack of actual disruption to wheat shipments from the Black Sea region weighed on prices on Monday, although lingering worries curbed declines.
Prices were also under pressure from expectations that the U.S. Department of Agriculture would raise its estimate of U.S. wheat production in its next monthly crop supply/demand report on Tuesday.
Rain continues to hamper wheat harvesting in western Europe, slowing field work and leaving a question mark over how much of the crop in major exporters France and Germany will be of sufficient quality to sell to overseas markets, analysts said.
December corn futures rose 0.1 percent to $3.63-1/4, having slid 2.1 percent on Friday.
Corn drew support as drought in China curbs production, spurring demand for imports, analysts said.
Despite edging higher, analysts said the grain remains under pressure from expectations that the USDA will sharply raise its corn harvest outlook.
November soybean futures climbed 0.1 percent to $10.85-1/2 a bushel.
The USDA is expected to lift its soybean forecast after generally favorable growing weather.
