GRAINS-Wheat eases from 4-month highs on US dollar strength

CANBERRA, Feb 18 (Reuters) - Chicago wheat futures fell on Tuesday as the U.S. dollar strengthened, but prices remained near Friday's four-month high as cold weather threatened crops in the Black Sea and U.S. Plains regions.

Corn and soy futures also slipped.

FUNDAMENTALS

The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 was down 0.8% at $5.95 a bushel at 0324 GMT after leaping to $6.03 on Friday, its highest since October 11 last year.

CBOT corn Cv1 fell 0.5% to $4.94 a bushel after rising to $5 on Friday for the first time since October 2023.

Soybeans Sv1 were down 0.7% at $10.29-1/4 bushel, having drifted from a 6-1/2-month high of $10.80 reached earlier this month.

Driving corn and wheat prices are expectations that supply will tighten, and, in the case of wheat, a rush of short covering by speculators. Soybean supply is forecast to be more plentiful.

Also supportive is relief that U.S. President Donald Trump has not yet unleashed tariffs on agricultural trade and that an easing U.S. dollar is making U.S. farm exports more competitive, though that easing halted on Tuesday. .DXY FRX/

Wheat export prices in Russia, the world's biggest supplier of the grain, rose for a fourth consecutive week last week amid declining shipments as an export quota entered into force, analysts said.

Cold temperatures in Russian and U.S. wheat areas could damage dormant crops that lack insulating snow cover, analysts say, with consultants IKAR last week trimming their forecast for Russia's 2025 grain crop.

The condition of France's wheat crop has also worsened sharply due to wet winter weather, data from farm office FranceAgriMer showed.

Saudi Arabia's main state wheat buying agency said it had bought about 920,000 metric tons of wheat in an international tender.

In other crops, weekend rains in Argentina helped to prevent further losses in 2024/25 soybean and corn crops that have already shrunk due to drought, the Rosario grains exchange said.

Brazil's massive 2024/25 soybean harvest was 23% complete as of last Thursday, agribusiness consultancy AgRural said, lagging last year's pace.

MARKETS NEWS

Asian shares and the dollar steadied on Tuesday as traders waited on a rate cut in Australia and company earnings in China and European shares marked record highs on the prospect of ramping up defence spending to back up any Ukraine peace deal. MKTS/GLOB