You are here
GRAINS-Wheat eases after volatile week on weather; soy, corn slip again
* Wheat eases after gains on dry weather risks worldwide
* Soybeans, corn hit new multi-month lows
* Good U.S. weather, Brazil area outlook curb soybeans
(Updates with European trading, changes byline/dateline)
By Gus Trompiz and Naveen Thukral
PARIS/SINGAPORE, June 8 (Reuters) - Chicago wheat eased on
Friday as the market weighed the impact of dry weather in
several major exporting zones worldwide against U.S. harvest
progress and a backdrop of large global supplies.
Soybean futures extended losses to touch their lowest in
almost five months, pressured by favourable weather for U.S.
crops and a forecast calling for a higher soybean area next
season in rival exporter Brazil.
Corn also set a new multi-month low as it was similarly
curbed by positive signs for the U.S. growing season.
The most-active wheat contract on the Chicago Board of Trade
was down 1.1 percent at $5.20-3/4 by 1130 GMT, pulling
back from Thursday's one-week high and now down marginally over
Weather risks have stirred up wheat markets in recent weeks,
with concern about dry weather in parts of Russia, Australia and
the European Union adding to worries about drought-reduced
yields in the U.S. winter wheat harvest now underway.
"Dry weather in the Black Sea and Australia is supporting
prices. This comes as there are also reports of lower than
expected yields in the United States," said Angus Thornton,
commodity analyst at Profarmer Australia.
Chicago wheat futures are forecast to remain over $5 a
bushel in the second half of 2018, reflecting weather-reduced
harvests in several countries, Commerzbank said on Thursday.
Investors were awaiting a clearer picture of yields in the
U.S. winter wheat harvest, while also assessing to what extent
weather losses would dent hefty global supplies.
The United Nations food agency on Thursday raised its
forecast of world wheat production in 2018, reflecting increases
for countries such as Argentina and India, and also lifted its
projection of world wheat stocks in the coming season.
CBOT soybeans were down 1.2 percent at $9.62-3/4 a
bushel, after earlier reaching their lowest since mid-January.
Corn was down 0.6 percent at $3.74 a bushel, close to an
earlier four-month low.
"Corn and soybean this week showed a very strong downturn in
a context where plantings are finalised in corn and nearly
finished in soybeans under satisfactory conditions," consultancy
Agritel said in a note.
Beneficial rains for corn and soybean crops are also
forecast in the U.S. Midwest through early next week.
In Brazil, the world's biggest soybean exporter, the soybean
planted area is expected to grow by 1 million hectares next
season, Agroconsult consultancy said.
Investors are also turning their attention towards next
Tuesday's world crop forecasts from the U.S. Department of
(Reporting by Gus Trompiz in Paris and Naveen Thukral in
Singapore, additional reporting by Colin Packham in Sydney,
editing by Louise Heavens)
© Copyright Thomson Reuters 2018. Click For Restrictions - http://about.reuters.com/fulllegal.asp