Wheat slides to near 3-month low as Ukraine tensions ease

(Reuters) – Chicago wheat fell 1.7 percent on Tuesday to its lowest since early March, with easing tensions in key supplier Ukraine and rains in parts of the U.S. Plains boosting prospects for global supply.

Corn slid, for the first time in four sessions, to its lowest in 11 weeks ahead of a report from the U.S. Department of Agriculture which is likely to show farmers have been making brisk progress in planting.

Chicago Board of Trade July wheat dropped as much as 1.7 percent to $6.41-1/4 a bushel, the lowest since March 6 and adding to a 1-percent decline on Friday.

July corn fell as much as 1.5 percent to $4.70-3/4 a bushel, its weakest since March 4. July soybeans eased 0.8 percent to $15.04 a bushel.

“There is bearish tone is wheat and corn markets after elections in Ukraine and there is improved weather in the U.S. grains belt,” said Kaname Gokon, general manager of research at brokerage Okato Shoji in Tokyo.

“U.S. farmers will finish planting corn by early June.”

European wheat futures fell for a fourth straight session on Monday to mark a 2-1/2 month low as a clear-cut election result in Ukraine eased concerns about the major grain exporter, reinforcing the recent bearish mood on prices.

Results showing a decisive win for billionaire Petro Poroshenko in the country’s presidential election on Sunday reassured investors, despite further clashes in pro-Russian strongholds in the east.     Fears that tensions in Ukraine would disrupt supply in one of the world’s largest grain exporters had contributed to a rally in wheat markets earlier this month.

Wheat has come under pressure as Southern Plains receive much needed rain, with the U.S. National Weather Service pegging some parts of the region recording as much as two inches of rain in recent days.

Traders will be looking at weekly U.S. crop progress data on Tuesday for signs that rain has improved the state of U.S. winter wheat, which has suffered from drought, cold and heat this year.