GRAINS-Grain futures slump, soybeans rise, ahead of USDA planting report

By P.J. Huffstutter

CHICAGO, March 27 (Reuters) - Chicago Board of Trade soybean futures turned higher on Thursday as the U.S. dollar weakened, while corn dipped to the lowest in more than three weeks on expectations of increased planting by U.S. farmers this year.

Meanwhile, CBOT's soft-red winter wheat nearby contracts slumped to new contract lows, under pressure from forecasts of rain in the U.S. and Russian wheat belt, sluggish U.S. wheat export sales and an agreement to implement a ceasefire in the Black Sea, market analysts said.

The most-active CBOT wheat Wv1 was 0.7% lower at $5.31-1/2 a bushel by 1624 GMT, after touching its lowest since January 10.

Most-active corn Cv1 was down 0.28% at $4.50 a bushel by 1158 GMT, having earlier dropped to its lowest since March 4. And soybeans Sv1 were up 1.5% at $10.16 a bushel and reaching the highest price in more than a week.

Grain markets were looking ahead to Monday's U.S. planting and stocks data from the U.S. Department of Agriculture, as well as seeking greater clarity on broad tariffs promised by U.S. President Donald Trump from April 2.

"The elephant in the room is that report, because the trade is going into it with a fear that we will see record corn acres," said Don Roose, president of U.S. Commodities in West Des Moines, Iowa. "So you're seeing some fund liquidation of corn, and fund short-covering of soybeans."

U.S. farmers will plant 94.361 million acres with corn this year, up from 90.594 million in 2024, according to an average of analysts polled by Reuters before the USDA report.

But some traders said strength in the Brazilian soybean basis amid booming Chinese demand for its bumper harvest, also gave soy markets a boost.

"It's the time of year where basis there is strong, when it should be weakened," said Jack Scoville, vice president at the Price Futures Group.