SINGAPORE —Chicago wheat slid on Tuesday, giving up some of previous session’s gains, as improved US crop condition weighed on prices, although intensifying Russia-Ukraine war limited losses.
Corn fell to its lowest level in six months, while soybeans inched higher.
“Any news of improved production prospects are going to be bearish for wheat prices as we get closer to the harvest in northern hemisphere,” said a Singapore-based grains trader.
The most-active wheat contract on the Chicago Board of Trade (CBOT) fell 0.7 percent to $5.35-1/4 a bushel.
Corn lost 0.6 percent to $4.35-1/2 a bushel, trading close to its lowest level since early December hit earlier in the session. Soybeans rose 0.2 percent to $10.35-1/4 a bushel.
The US Department of Agriculture’s (USDA) weekly crop progress report showed on Monday 50 percent of US spring wheat and 52 percent of winter wheat in good to excellent condition, exceeding analyst expectations.
The US winter wheat crop has been plagued by persistent dryness, but recent rains have helped the crop rebound. The USDA ratings surpassed analyst predictions of a 50 percent good to excellent rating for the winter wheat crop and a 47 percent rating for spring wheat.
Wheat prices rose on Monday on short covering as a Ukrainian drone attack in Russia shifted attention back on the war between the two grain exporters.
Australia’s wheat production is projected to drop 10 percent this year to 30.6 million metric tons due to dry conditions across several cropping regions. Nevertheless, production is expected to remain well above the 10-year average, the Australian Bureau of Agricultural and Resource Economics and Sciences said in a quarterly crop report.
