GRAINS-Wheat rises on poor US crop ratings, ample supply limits gains
CANBERRA, May 29 (Reuters) - Chicago wheat futures rose on Thursday as lower-than-expected U.S. crop ratings helped prices to recover from a sell-off earlier in the week.
However, prices remained near five-year lows amid sluggish demand and expectations that a strong Northern Hemisphere harvest will keep the market well supplied.
Chicago corn and soybean futures steadied after dropping on Wednesday following U.S. Department of Agriculture data showing rapid progress in planting of U.S. crops.
All three contracts shrugged off a rise in the U.S. dollar triggered by a U.S. federal court blocking President Donald Trump's "Liberation Day" tariffs from going into effect. .DXY MKTS/GLOB
A stronger dollar makes U.S. farm exports costlier for buyers with other currencies.
FUNDAMENTALS
* The most active wheat contract on the Chicago Board of Trade (CBOT) Wv1 was up 0.6% at $5.33-1/2 a bushel at 0053 GMT, with CBOT soybeans Sv1 rising 0.2% to $10.51 a bushel and corn Cv1 up 0.1% at $4.51-1/4 a bushel.
* A USDA crop progress report on Tuesday rated only 45% of U.S. spring wheat in good to excellent condition, below the lowest in a range of analyst expectations, and showed a fall in winter wheat condition ratings.
* Cold and wet weather has battered the young wheat crop, wrote Reuters columnist Karen Braun. A coming flip to better weather should help but the low rating sets the scene for market scares if unfavorable weather patterns set in, she said.
* Elsewhere, crop news has been better. The European Commission on Wednesday slightly raised its forecast for usable production of common wheat in the EU in 2025/26.
* A strong wheat harvest in India is rapidly replenishing stocks, meaning the country will be able to meet domestic demand without imports this year.
* In other crops, the USDA said on Tuesday that 76% of U.S. soybeans and 87% of U.S. corn was planted by Sunday, ahead of five-year averages of 68% for soybeans and 85% for corn.
* However, it rated 68% of the corn crop as good to excellent, well below the average estimate of 73% in a Reuters analyst poll.
* CBOT corn fell 1.9% on Wednesday and soybeans dropped 1.3%.
MARKETS NEWS
* Asian shares and Wall Street futures climbed on Thursday. MKTS/GLOB
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