Chicago | Reuters — U.S. wheat futures sank 1.3 per cent on Tuesday, flirting with five-year lows after rain in key production areas boosted harvest prospects as the crop nears maturity, traders said.
Poor export demand for U.S. supplies and strong yield projections from early results of a crop tour through Kansas also pressured the market.
Egypt on Tuesday said it bought Russian and Romanian wheat in its latest deal that totaled 120,000 tonnes, again bypassing U.S. offerings.
“It was pretty widely expected,” Jefferies Bache grains analyst Shawn McCambridge said. “But it is just another reminder of how uncompetitive we are in those markets.”
Read Also
Alberta crop conditions improve: report
Varied precipitation and warm temperatures were generally beneficial for crop development across Alberta during the week ended July 8, according to the latest provincial crop report released July 11.
Corn futures closed higher, with bargain buyers stepping into the market after the most active July contract hit its lowest in seven months. But a government report that showed U.S. farmers were ahead of schedule in their planting kept a bearish tone over the market.
Soybeans rose, supported by gains in the soyoil market for the second day in a row amid talk of strong overseas demand. Firm cash markets also boosted soybeans.
Chicago Board of Trade soft red winter wheat for July delivery settled as down 6-1/4 cents at $4.66-1/2 a bushel (all figures US$). K.C. July hard red winter wheat was eight cents lower at $4.90-1/4 a bushel.
The U.S. Department of Agriculture rated 43 per cent of winter wheat as good or excellent, up one percentage point from the previous week and close to the five-year average of 46 per cent.
Traders were digesting early results from the Wheat Quality Council’s annual tour of Kansas, the biggest U.S. production state for hard red winter wheat. Despite mixed reports, traders said the projected yields were generally above expectations.
CBOT July corn ended up 1-1/2 cents at $3.62-3/4 a bushel, snapping a three-day stretch of losses.
Ideal planting weather for crops in the central U.S. Corn Belt last week resulted in a sharp jump in seedings that bodes well for root production and final yields, state crop reports showed on Monday.
“Even in the eastern Corn Belt, subject to earlier delays, planting progressed rapidly,” Tobin Gorey, director of agricultural research at Commonwealth Bank of Australia, said in a note to clients.
CBOT July soybeans were 8-1/2 cents higher at $9.84-3/4 a bushel.
— Mark Weinraub is a Reuters correspondent covering grain markets from Chicago. Additional reporting for Reuters by Naveen Thukral in Singapore and Gus Trompiz in Paris.
