Chicago | Reuters –– U.S. wheat futures fell on Monday on a round of technical selling after posting their biggest weekly gain in 3-1/2 months, traders said.
Corn and soybean futures also were weaker, pressured by robust global supplies and profit taking after posting modest gains during the overnight trading session.
Wheat futures, which had hit their highest in nearly seven weeks during the overnight session, notched the biggest losses. Some weather forecasts calling for much-needed rains in the U.S. Plains late week added to the bearish tone. Rain also fell in growing areas of Ukraine and Russia.
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“It looks like the forecast looks much wetter in the southern Plains,” said Mark Schultz, chief analyst for Northstar Commodity Investment Co. “I think you saw a little bit of profit-taking.”
Chicago Board of Trade May soft red winter wheat futures ended down 8-1/2 cents at $5.27-3/4 a bushel. K.C. hard red winter wheat for May delivery fell 10-3/4 cents to close at $5.72 a bushel.
Traders also noted some unwinding of short corn/long wheat positions.
CBOT May corn was 1-1/2 cents lower at $3.85 a bushel while May soybeans dropped 7-1/2 cents to $9.78-1/2 a bushel, closing near its session low. Both contracts failed to hold support above their 50-day moving averages during overnight trading.
Declines in corn and soybeans were kept in check by rains across the U.S. Midwest.
“Early planting and fieldwork over the next week should be slowed by frequent rains over much of the Corn Belt,” Farm Futures market analyst Bryce Knorr said in a report.
Firm cash markets for both corn and soybeans also curtailed the drop on the futures market. Dealers at processors around the U.S. Midwest edged their basis levels higher due to a slow pace of farmer sales.
— Mark Weinraub is a Reuters correspondent covering grain markets from Chicago. Additional reporting for Reuters by Naveen Thukral in Singapore.
