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GRAINS-Wheat extends fall, down over 1.5 pct as U.S. weather improves
* Chicago wheat down for second day
* Rains helps crops in drought-hit U.S. Plains
* Soybean, corn also lower
(Adds comment, detail, updates prices, changes dateline)
By Naveen Thukral and Sybille de La Hamaide
SINGAPORE/PARIS, May 7 (Reuters) - Chicago wheat futures
slid more than 1.5 percent on Monday, falling for a second
session as an improving weather outlook for the U.S. winter crop
weighed on prices.
U.S. soybeans were also down, under pressure from a lack of
demand from top importer China amid a trade dispute between
Washington and Beijing.
The Chicago Board of Trade most-active wheat contract
had dropped 1.6 percent to $5.17-3/4 a bushel by 1100 GMT,
adding to Friday's 2.2 percent decline.
Soybeans lost 0.7 percent to $10.29-1/4 a bushel,
while corn slid 0.6 percent to $4.04 a bushel.
"It is a weather-driven market, prices are coming under
pressure as there have been rains in some parts of the U.S.
Plains and there are forecasts of more rains, but it is not a
complete reversal of trend," said an India-based commodities
The contract hit a more than nine-month high last week on
worries about dryness hurting the hard red winter wheat crops in
top producer Kansas but recent rains have eased some concerns.
"Recent highs that had not been seen since last summer have
pushed some operators to anticipate some sales. Improvements in
climatic conditions with possible rains have also reinsured the
traders," French consultancy Agritel said.
Scouts on an industry tour on Thursday projected that
drought-hit Kansas, the top U.S. wheat-growing state, may
produce its smallest crop since 1989.
Forecasts of bumper production in the Black Sea region are
also putting pressure on wheat prices.
For soybeans, there is disappointment that trade talks
between Washington and Beijing did not move closer to a deal to
resolving the mounting dispute that has crimped U.S. crop sales
The U.S. administration has drawn a hard line in trade talks
with China, demanding a $200 billion cut in the Chinese trade
surplus with the United States, sharply lower tariffs and
advanced technology subsidies.
U.S. farmers were hoping for a quick resolution to the
conflict after China last month threatened tariffs against a
range of U.S. goods, including a 25-percent duty on soybeans.
U.S. soybean sales to China over the last four weeks are
down 10 percent from a year ago, according to U.S. trade
figures. This is a blow to farm country, which helped push
President Donald Trump into office in the 2016 election.
Prices at 1100 GMT
Last Change Pct End Ytd
Move 2017 Pct
CBOT wheat July 517.75 -8.50 -1.62 427.00 21.25
CBOT corn July 404.00 -2.25 -0.55 350.75 15.18
CBOT soy July 1029.25 -7.50 -0.72 951.75 8.14
Paris wheat May 168.25 -1.25 -0.74 162.50 3.54
Paris maize Jun 167.00 0.00 0.00 163.50 2.14
Paris rape May 348.75 0.25 0.07 347.75 0.29
WTI crude oil 70.36 0.64 0.92 60.42 16.45
Euro/dlr 1.19 0.00 -0.34
Most active contracts - Wheat, corn and soy US cents/bushel,
Paris futures in euros per tonne
(Reporting by Naveen Thukral
Editing by Joseph Radford and Edmund Blair)
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