GRAINS-Wheat slips as risks of adverse weather recede
CANBERRA, May 27 (Reuters) - Chicago wheat futures extended declines to the third straight session on Tuesday as the risk of crop-damaging weather before the northern hemisphere harvest receded, reinforcing expectations of a well-supplied market.
Corn and soybean futures rose slightly, helped by a soft U.S. dollar that made U.S. farm goods more attractive to overseas buyers. .DXY USD/
FUNDAMENTALS
* The most active wheat contract on the Chicago Board of Trade (CBOT) Wv1 fell 0.2% to $5.41-1/2 a bushel at 0138 GMT, with CBOT soybeans Sv1 rising 0.3% to $10.63-1/4 a bushel and corn Cv1 adding 0.1% to $4.60 a bushel.
* The U.S. dollar hovered close to Monday's one-month low against a basket of major currencies.
* Worries that adverse weather would hit wheat production triggered a bout of short-covering, lifting prices from a five-year low of $5.06-1/4 reached on May 13.
* But the rally stalled as traders concluded that any damage to production would likely be limited.
* On Monday, China's meteorological centre said rainfall would ease drought conditions in the country's key wheat-growing provinces.
* Meanwhile, drought-hit north German wheat regions received substantial rainfall over the weekend, calming fears of dryness stress to crops.
* European Union crop monitoring service MARS slightly lifted its outlook for EU soft wheat yield.
* Last week, Russian consultants Sovecon raised its wheat production forecast for the country but warned dryness could still cause some crop losses.
* Export demand for wheat remains weak and export prices in top shipper Russia dipped last week, analysts said.
* Agribusiness consultancy Datagro increased its forecasts for Brazil's 2024-25 soybean and corn crops.
* Large speculators reduced their net short position in CBOT wheat futures in the week to May 20 but expanded their net short in corn and switched from bullish to bearish on soybeans.
MARKETS NEWS
* Global markets climbed on Monday and the euro rallied after U.S. President Donald Trump kicked his threat to slap 50% tariffs on European Union goods into July, marking another temporary trade policy reprieve. MKTS/GLOB
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