Wheat drops on good world crop weather, slack export demand
* Wheat near 3-mth low on better Northern Hemisphere weather
* Few wheat purchase tenders in market
* Corn futures down after Friday's rally, soybeans up
By Michael Hogan
HAMBURG, March 22 (Reuters) - Chicago wheat futures fell for a fourth consecutive session on Monday, with the market trading close to three-month lows hit on Friday as good weather across the Northern Hemisphere supported expectations of better crops.
Corn fell on selling pressure after strong gains on Friday, while soybeans were underpinned by concern about tight U.S. supplies.
Chicago Board of Trade most-active wheat was down 0.2% at $6.25-1/4 a bushel at 1152 GMT, after hitting $6.21-3/4 on Friday, its lowest since Dec. 30, 2020.
Soybeans were marginally higher, rising 0.05% to $14.17 a bushel. Corn fell 0.4% to $5.55-1/4 a bushel.
Wheat is facing downward pressure from crop-friendly rainy weather in the United States and the Black Sea region.
“Wheat is weaker today as weather is looking favourable for crops in the U.S. and other regions, while wheat export demand is also looking slack, with few purchase tenders in the international market,” said Matt Ammermann, StoneX commodity risk manager.
“It is still early in the season, but today weather risk to wheat crops is not being seen, with rain in the U.S. Plains expected and also in Europe and the Black Sea.”
Ukrainian wheat export prices have fallen about $7 a tonne over the past week on improved harvest forecasts in the country and a drop in Russian wheat prices, the APK-Inform agriculture consultancy said on Sunday.
“Corn and soybeans are seeing some selling pressure today after their strong rises on Friday," Ammermann said. "But there is concern about tight soybean supplies in the United States which is limiting falls.”
“The price spread between U.S. and Brazilian soybeans will need to widen to conserve soybean supplies in the United States, which are looking incredibly tight after the strong exports this season.”
Corn had been partly supported on Friday by large U.S. exports to China. (Reporting by Michael Hogan in Hamburg; Additional reporting by Naveen Thukral in Singapore; Editing by Jan Harvey)
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