Wheat falls to 17-day low as rains provide temporary relief

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U.S. wheat fell 1 percent to hit a 17-day low on Monday as rains across a key producing region weighed on prices, though forecasts for continued dry weather provided a floor to losses.

Corn fell 1 percent, returning much of the gains from the previous session, while soybeans edged lower.

The most active wheat futures on the Chicago Board of Trade were down 1.1 percent at $5.05-1/4 a bushel by 0340 GMT, near the session-low of $5.02-3/4 a bushel – the weakest since June 30. Wheat closed down 0.2 percent on Wednesday.

Analysts said rains across pockets of a key U.S. producing region were pressuring prices, though the timely moisture has done little to relive stress on crops.

“North American spring wheat regions still have large pockets that were very likely to be seeing yields continue to decline,” said Tobin Gorey, director of agricultural strategy, Commonwealth Bank of Australia.

Weather models call for continued dry weather across the U.S. Plains, which may see yields fall below official estimates.

Despite the continued dry weather, the U.S. Department of Agriculture last week forecast ample global grain and soy supplies.

The most active corn futures dropped 1.3 percent to $3.84-1/2 a bushel, having gained 1.7 percent in the previous session.

The most active soybean futures fell 0.4 percent to $9.97-1/2 a bushel, after firming 1.4 percent on Friday.

The USDA on Friday said exporters sold 1.3 million tonnes of soybeans to China, an announcement that followed a Thursday signing ceremony between Chinese soy buyers and American sellers in Iowa.

[reuters]

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