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 soybeans steadied after dropping on Wednesday following the U.S. Department of Agriculture data showing rapid progress in planting of U.S. crops.
All three contracts shrugged off a rise in the 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.
The most active wheat contract on the Chicago Board of Trade (CBOT) Wv1 was up 0.3% at $5.32 a bushel, as of 0135 GMT.
The USDA on Tuesday rated only 45% of U.S. spring wheat in good to excellent condition, far below expectations, and showed a decline in the condition of U.S. winter wheat.
A coming flip to better weather should help the young wheat crop but the low rating sets the scene for market scares if unfavourable weather patterns set in, wrote Reuters columnist Karen Braun.
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 won't need to import.
While wheat stocks should rise in India, they won't in the rest of the world, analysts at Rabobank said, predicting CBOT prices would rise towards $6 a bushel over the course of 2025.
"A big question mark is whether India could allow some exports," Rabobank said. "If India opens the export gates or Russian output ends up being bigger than expected following mild spring weather, we could see prices capped."
In other crops, CBOT soybeans Sv1 were up 0.3% at $10.52 a bushel and corn Cv1 slipped 0.1% to $4.50-3/4 a bushel.
Rabobank said global corn stocks remained tight and strong U.S. export demand had extended longer than expected.
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