Wheat dips after rally, lower US crop ratings to support prices
SINGAPORE, May 21 (Reuters) -Chicago wheat futures eased on Tuesday, with the market taking a breather after climbing almost 6% in the last session on support from lower U.S. winter crop ratings and frost damage in Russia.
Soybeans and corn fell as U.S. planting rapidly advanced.
FUNDAMENTALS
* The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 fell 0.5% to $6.85-1/2 a bushel, as of 0010 GMT, after gaining 6% on Monday. Soybeans Sv1 lost 0.2% to 12.45-1/4 a bushel and corn Cv1 dropped 0.4% to $4.58-1/2 a bushel.
* The U.S. Department of Agriculture lowered its U.S. winter wheat crop condition rating to 49% good to excellent in a weekly crop progress report on Monday, down 1 point from a week ago and 2 points below the average estimate gathered by Reuters from 14 analysts.
* The crop's condition was still the highest for this time of year since 2020, USDA data showed
* Russian wheat export prices rose even more sharply last week than the week before, as crop damage from May frosts led to further cuts in forecasts for this year's harvest.
* The price of 12.5% protein Russian wheat scheduled for free-on-board (FOB) delivery in June was $239 per metric ton, up from $221 per ton the previous week, according to the IKAR consultancy.
* Severe frosts across northern and eastern Ukraine could also reduce grain and oilseed harvests, analyst APK-Inform warned.
* In Australia, dry weather in western and southern parts of the country is threatening to shrink crops, with canola output likely to drop this year, but ample rainfall in eastern states is expected to boost overall wheat output, analysts said.
* The USDA said 70% of the U.S. corn crop was planted as of Sunday, up from 49% a week earlier and 2 points higher than the average trade estimate of 68% complete. Farmers have also finished planting 52% of their soybean crop, the agency said, up from 35% done a week ago and 3 points above the average analyst estimate.
* Commodity funds were net buyers of CBOT wheat, corn, soybean, soymeal and soyoil futures contracts on Monday, traders said. COMFUND/CBT
MARKET NEWS
* The Nasdaq closed at a record high on Monday and gold jumped to an all-time high as investors weighed hawkish statements from the Federal Reserve against evidence of cooling U.S. inflation. MKTS/GLOB
DATA/EVENTS (GMT)
0900 EU Total Trade Balance SA March
Reporting by Naveen Thukral; Editing by Rashmi Aich
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