Wheat drops, near 2-year low as supply concerns ease
Chicago wheat futures slid on Monday (1 May), with prices trading close to last week's lowest in almost two years, as rain in the US Plains and easing concerns over Ukrainian supplies weighed on the market.
Corn and soybeans lost ground.
"While there will need to be more rain in the central and southern Plains..., a wave of precipitation certainly leaves a bearish element in the market," commodities research firm Hightower said in a report.
Keep updated, follow The Business Standard's Google news channel
The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 lost 0.7% to $6.29-1/2 a bushel, as of 0212 GMT and corn Cv1 gave up 0.4% to $5.82-1/2 a bushel. Soybeans Sv1 fell 0.2% at $14.16-1/4 a bushel.
Recent rain in the drought-hit US Plains and forecasts for more have eased concerns about hard red winter wheat production.
In a sign more Ukrainian grain may hit the market, the European Commission said on Friday it had reached a deal in principle to allow the transit of Ukrainian grain to resume through five European Union countries that had imposed restrictions.
The corn market is facing headwinds as a large Brazilian crop is eating into demand for US supplies.
A bumper Brazilian soybean crop is also expected to flow onto export markets, offsetting a drought-hit harvest in Argentina.
Large speculators increased their net short position in Chicago Board of Trade corn futures in the week of 25 April, regulatory data released on Friday showed.
The Commodity Futures Trading Commission's weekly commitments of traders report also showed that noncommercial traders, a category that includes hedge funds, increased their net short position in CBOT wheat and cut their net long position in soybeans.
