GRAINS-Wheat futures dip on timely US rains; corn, soybeans end firm

By P.J. Huffstutter and Julie Ingwersen

CHICAGO, April 6 (Reuters) - Chicago Board of Trade wheat futures dipped to a nearly two-week low on Monday on forecasts for timely rains that could bolster crop prospects in the drought-stressed U.S. Plains, traders said.

Corn and soybean futures closed modestly higher, buoyed by strength in crude oil futures CLc1 as brokers monitored conflict in the Middle East.

CBOT May wheat WK26 settled down 3 cents at $5.95-1/4 per bushel after touching $5.88-1/2, its lowest since March 25.

CBOT May corn CK26 ended 1-3/4 cents higher at $4.54 a bushel and May soybeans SK26 finished up 3-1/4 cents at $11.66-3/4 a bushel as CBOT May soyoil futures BOK26 set a life-of-contract high at 70 cents a pound.

Wheat sagged on outlooks for showers in the Plains that could boost yield prospects for winter wheat in the heart of the U.S. breadbasket. Beneficial rainfall is expected in the eastern two-thirds of the Plains wheat belt over the next 10 days, while chances are lower in the far western third of the region, forecasters said.

After the close of the CBOT, the U.S. Department of Agriculture, in its first weekly crop progress report for 2026, rated 35% of the U.S. winter wheat crop in good-to-excellent condition, below a range of analysts' expectations and the lowest for this time of year since 2023.

Drought has been building in the southern and central Plains. As of March 31, 65% of U.S. winter wheat was located in an area experiencing drought, the USDA said last week, up from 57% a week earlier and 37% a year ago.

Corn and soybean futures firmed as traders assessed the situation in the Middle East. Iran has called for an end to the war while U.S. President Donald Trump reiterated threats of broad attacks unless Tehran makes a deal by Tuesday night.

Corn and soy futures sometimes track trends in crude oil markets due to their roles as feedstocks for biofuels. A shortage of fertilizers linked to the conflict could also impact the size and quality of crops in some regions.

Traders await a meeting in mid-May between President Trump and Chinese President Xi Jinping during Trump's first visit in eight years to China, the world's biggest soy buyer.

"People's antennas have really been raised by this upcoming meeting, because it has some potential for not only China making soybean purchases - but also possibly making some corn sales too," said Bill Lapp of Advanced Economic Solutions in Omaha, Nebraska.

Brokers have begun adjusting positions ahead of the USDA's monthly world supply/demand report due on Thursday. Analysts surveyed by Reuters on average expected the agency to raise slightly its forecasts of world corn and soybean year-end inventories.