Wheat slips further from high as Russia rain awaited
Updates at 1159 GMT, changes dateline, reporting lines
PARIS/CANBERRA, May 30 (Reuters) -Chicago wheat futures fell further on Thursday from 10-month highs, as traders assessed whether forecast rain in parts of Russia would halt a rapid decline in harvest estimates for the world's top exporter.
Soybean and corn futures were little changed after dipping on Wednesday following a U.S. Department of Agriculture report showing speedy planting progress in the U.S. Midwest.
Strength in the dollar this week has also curbed grain futures by underscoring tepid U.S. exports, though the dollar eased back on Thursday. FRX/
The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 was down 0.8% at $6.87-1/4 a bushel at 1159 GMT.
Prices surged to $7.20 on Tuesday, the highest since July, after the latest cuts to Russian harvest estimates due to dryness and spring frosts.
But weather charts suggest that rain in the week ahead should reach dry parts of Russia, while the start of harvesting in the southern U.S. Plains has also created seasonal supply pressure.
"Prices are certainly overdone to the upside," said Ole Houe, director of advisory services at IKON Commodities in Sydney.
But the crop outlook in Russia remained uncertain, with warm weather raising fresh concerns.
"The few rains forecast for Russian winter wheat ... are reassuring operators who want to be reassured. But there are still major concerns when it comes to temperatures," Argus said in a note.
Also underpinning prices are expectations that India could soon begin wheat imports after a six-year gap to replenish depleted reserves and hold down prices.
CBOT soybeans Sv1 were up 0.04% at $12.14-1/2 a bushel and corn Cv1 was 0.3% higher at $4.56-1/2 a bushel.
A U.S. government weekly report showed U.S. corn and soybean planting was slightly ahead of the average pace of the past five years, at 83% and 68% complete, respectively.
Argentinian farmers are meanwhile speeding up badly delayed sales of soybeans, government data show, helped by higher global prices and better weather conditions for the ongoing harvest.
Prices at 1159 GMT | |||
Last | Change | Pct Move | |
CBOT wheat Wv1 | 687.25 | -5.50 | -0.79 |
CBOT corn Cv1 | 456.50 | 1.25 | 0.27 |
CBOT soy Sv1 | 1214.50 | 0.50 | 0.04 |
Paris wheat BL2U4 | 261.75 | -1.50 | -0.57 |
Paris maize EMAc1 | 220.00 | 5.00 | 2.33 |
Paris rapeseed COMc1 | 488.25 | -4.25 | -0.86 |
WTI crude oil CLc1 | 79.22 | -0.01 | -0.01 |
Euro/dlr EUR= | 1.08 | 0.00 | 0.16 |
Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per metric ton | |||
Reporting by Gus Trompiz in Paris and Peter Hobson in Canberra; Editing by Rashmi Aich and Mark Potter
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