Wheat firms after deep losses; ample world supplies limit gains

Chicago wheat rose on Tuesday with bargain-buying supporting prices after the market dropped to its lowest in almost two years on plentiful global supplies and improved U.S. weather.

Corn and soybeans inched higher, but the upside potential in both markets is likely to be limited amid favourable U.S. planting weather and stiff competition in the export market.

* The most-active wheat contract on the Chicago Board of Trade (CBOT) was up 0.5% at $6.21-3/4 a bushel, as of 0009 GMT, after dropping more than 2% on Monday to its lowest since July 2021.

* Corn added 0.3% to $5.86-1/4 a bushel and soybeans gained 0.2% to $14.29-3/4 a bushel.

* The U.S. Department of Agriculture (USDA) on Monday rated 28% of U.S. winter wheat in “good-to-excellent” condition, up 2 percentage points from last week, following much-needed rains in the Plains, but still among the lowest on record for this time of year.

* For corn, the USDA said planting was 26% complete as of Sunday, just below the average analyst estimate of 27% and matching the five-year average.

* U.S. soybean planting was 19% complete, ahead of the average analyst estimate of 17% and the five-year average of 11%.

* The corn and soybean markets are facing headwinds as large Brazilian crops are eating into demand for U.S. supplies.

* Consultancy Strategie Grains raised its forecast for 2023 European Union rapeseed production this year to 20 million tonnes from 19.5 million a month earlier, citing favourable crop conditions in much of Europe.

* Commodity funds were net sellers of CBOT wheat and corn futures contracts on Monday and net buyers of soybeans, soymeal and soyoil, traders said.

* Wall Street indexes closed slightly lower and the dollar gained with Treasury yields as investors digested Monday’s data and waited for the U.S. Federal Reserve’s interest rate decision due on Wednesday as well as key upcoming economic data and quarterly earnings reports.

Tags: corn, prices, soybeans, wheat, soyoil, futures, soymeal