GRAINS-Chicago wheat and corn drop on weak export demand
By Naveen Thukral
SINGAPORE, April 6 (Reuters) - Chicago wheat slid more than 1% on Monday as concerns over weak export demand weighed on prices, though firm crude oil prices limited the downside.
The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 fell 1.25% to $5.90-3/4 a bushel by 0836 GMT while corn Cv1 lost 0.3% to $4.51 a bushel.
"There is a lack of buying interest from end users as there is so much uncertainty over the war and oil prices," said one trader in Singapore. "This is putting some pressure on prices."
Sluggish export demand for U.S. products continues to pressure prices. The U.S. Department of Agriculture said on Thursday that U.S. corn export sales for the week ended March 26 fell to 1.1 million metric tons, down 20% from the prior four-week average.
Concerns over a possible escalation of the Iran war and prolonged disruptions to oil supplies limited the decline in grain prices, which are increasingly being used to make alternative fuels.
Soybeans Sv1 rose a marginal 0.15% to $11.65-1/4 a bushel.
A shortage of fertilizers linked to the conflict could also impact the size and quality of crops in some regions.
India, the world's largest urea importer, is looking to purchase 2.5 million metric tons of the key crop nutrient to shore up domestic supplies, which have tightened due to the U.S.-Israeli war with Iran.
The imports are critical as planting for rice, corn, and soybeans is scheduled to begin in June with the arrival of the monsoon.
Large speculators cut their net long position in CBOT corn futures in the week to March 31, regulatory data released on Friday showed.
The Commodity Futures Trading Commission's weekly commitments of traders report also showed that non-commercial traders, including hedge funds, trimmed their net short position in CBOT wheat, while raising net long position in soybeans.
