Wheat, corn and soybeans slip ahead of US stockpiles data
CANBERRA, Sept 30 (Reuters) -Chicago wheat, soybean and corn futures dropped on Monday as traders awaited U.S. Department of Agriculture reports, due later in the day, that are expected to show the largest Sept. 1 stocks of all three crops in the United States since 2020.
FUNDAMENTALS
* The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 was down 0.5% at $5.77 a bushel, as of 0126 GMT, while CBOT corn Cv1 fell 0.5% to $4.16 a bushel and soybeans Sv1 slipped nearly 1% to $10.56 a bushel.
* Plentiful supply pushed all three contracts to four-year lows in July and August, but have regained some ground ever since, helped in part by a weaker dollar making U.S. crops more competitive on global markets. FRX/ USD=
* Some supply concerns have also crept into the markets.
* Soybeans rose to their highest in two months on Friday and soymeal futures SMV24 rocketed as Hurricane Helene damaged crops and infrastructure in the Gulf Coast region.
* Soybeans have also been supported by dryness in top producer Brazil that has slowed the start of planting.
* In wheat, the European Commission cut its forecast for usable production of common wheat in the EU in 2024/25 to a 12-year low of 114.6 million metric tons, 9% below last year's crop, after adverse weather.
* Unfavourable weather could also decrease Ukraine's 2024 grain harvest to 54.6 million tons from around 60 million tons in 2023, the country's new agriculture minister said. Ukraine is a major wheat and corn exporter.
* Russia, meanwhile, hiked the export duty for corn almost tenfold on Friday in the first sign of export curbs amid lower corn crop forecasts.
* After months of unusually pessimistic sentiment, speculators' bearish bets across Chicago soybeans and corn have finally reduced to the point that they are in line with other recent supply-heavy years.
MARKETS NEWS
* Asia share markets were mostly firmer as China announced more stimulus measures, though the Nikkei dived on concerns that Japan's new prime minister favours normalising interest rates. MKTS/GLOB
Reporting by Peter Hobson; Editing by Sherry Jacob-Phillips
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