Chicago | Reuters—U.S. grain futures fell on Monday as pressure from ample supplies partly unraveled steep gains late last week following a U.S. Department of Agriculture report that projected lower-than-expected U.S. corn plantings.
Soybean futures eased along with lower corn and wheat in response to heavy global supplies and seasonally slowing U.S. export demand.
The stronger U.S. dollar added further pressure to grains as it makes dollar-denominated commodities costlier for importers holding other currencies.
Grain traders are turning their focus to spring planting weather after the USDA on Thursday pegged corn seedings well below trade expectations.
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Some analysts and traders are expecting corn acres to increase with good spring planting weather, potentially boosting production when supplies are already ample.
“The U.S. weather outlook for the next two weeks is, for the most part, for above-normal temperatures and above-normal moisture. That’s supporting the idea that we’ll have good early planting,” said Rich Nelson, chief strategist for brokerage Allendale.
Chicago Board of Trade May corn futures CK24 were down 6-1/2 cents at $4.35-1/2 a bushel after last Thursday’s USDA data triggered corn’s strongest rally in more than eight months.
May soybeans SK24 were down 5-3/4 cents at $11.85-3/4 a bushel.
CBOT May soft red winter wheat WK24 fell 3-1/4 cents to $5.57 a bushel and May K.C. hard red winter wheat KWK24 dropped 9-3/4 cents to $5.75-1/2 as traders anticipated improved winter crop ratings in a USDA report due at 3:00 p.m. CDT.
“Wheat is pricing in a much better good-to-excellent number for crop conditions,” said Mike Zuzolo, president of Global Commodity Analytics.
Analysts polled by Reuters expect winter wheat ratings at 57 per cent good to excellent, which would be the highest late-March rating since 2016.
Poor U.S. wheat export prospects also weighed on the market as rival suppliers continued to offer cheaper grain on the world market.
—Additional reporting for Reuters by Bernadette Christina in Jakarta
