SINGAPORE – Chicago wheat lost more ground on Tuesday, with prices dropping to their lowest in almost two years on forecasts of much-needed rains in US winter grain regions where crops have deteriorated amid a severe drought.
Corn edged lower as China cancelled some purchases of US supplies, while soybeans eased.
“US hard red winter wheat areas will get the needed rain this week,” said Terry Reilly, a senior analyst at Futures International. “Most areas will get rain by Thursday with Tuesday and Wednesday the wettest.”
The most-active wheat contract on the Chicago Board of Trade (CBOT) slid 0.6 percent to $6.53-1/4 a bushel after hitting its lowest since July 2021 at $6.53 a bushel.
Corn fell half a cent to $6.07-1/4 a bushel and soybeans Sv1 also slid half of a cent to $14.35-1/2 a bushel.
Export prices of Russian wheat continued to decline last week as low demand outweighed the impact on the market on uncertainty over whether the Black Sea grain deal will be extended, analysts said.
Prices for Russian wheat with 12.5 percent protein content, delivered free on board (FOB) from Black Sea ports, were $265 a ton, down $6 from last week, the IKAR agriculture consultancy said. – Reuters
