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Favorable Weather Has Wheat Futures Down Tuesday A.M.

Chicago wheat futures declined as favorable weather in the U.S. and other exporting countries improves the outlook for global supplies.

As much as six times the normal amount of moisture has fallen in parts of the southern Great Plains in the past 30 days, according to the U.S. Drought Monitor. 

Rain in south Russia and increased precipitation in growing regions of Ukraine will help prospects for winter wheat.

"Showers should remain active across much of the (former Soviet Union) this week, which will further ease dryness," said Donald Keeney, a senior agricultural meteorologist at MDA Information Services.

Wheat futures for December delivery on the Chicago Board of Trade declined 5 ¼ cents to $4.88 ¾ a bushel in early trading. Kansas City wheat futures fell 2 ¼ cents to $4.65 ¼ a bushel.

Corn and soybean futures were mixed in early trading.

Soybeans rebounded after yesterday reaching a fresh six-year intraday low, while corn prices are teetering between gains and losses after yesterday nearing a marketing-year low set last week.

Investors in the week through November 10 were net-short 53,164 corn contracts, 48,930 soybean contracts, and 22,914 Chicago wheat contracts, according to the Commodity Futures Trading Commission. While that shows they’re quite bearish on agricultural commodities, it also leaves a lot of room for short-covering should bullish news surface.

Corn futures for December delivery rose ½ cent to $3.60 ½ a bushel in early trading on the Chicago Board of Trade.

Soybean futures for January delivery gained 2 cents to $8.61 ½ a bushel on the CBOT. Soymeal for December delivery fell 50 cents to $288.30 a short ton, while soyoil moved 0.04 cent to 27.33 cents a pound.

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