GRAINS-Wheat eases, but US drought keeps prices near two-year high

SINGAPORE, May 4 (Reuters) - Chicago wheat slid on Monday, giving up some of its recent gains, although a severe drought across the U.S. winter crop areas kept prices close to a two-year high.

Soybeans and corn rose on expectations of planting delays in the U.S. Midwest.

FUNDAMENTALS

The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 fell 0.2% to $6.36-3/4 a bushel, as of 0028 GMT, having climbed to its highest since mid-2024 on Wednesday.

Soybeans Sv1 added 0.5% to $12.09-1/4 a bushel and corn Cv1 rose 0.2% to $4.81-1/4 a bushel.

On Wednesday, the wheat market hit its highest since mid-2024 on worries about drought threatening yields in the U.S. Plains.

Weather concerns also supported corn and soybeans, with some farmers in the central and eastern U.S. grain belt yet to begin planting due to wet, cold conditions, traders said.

A sharp rise in fertiliser costs due to the Iran war is threatening to cut farm output, adding support to prices.

Large speculators raised their net long position in CBOT corn futures in the week to April 28, regulatory data released on Friday showed.

The Commodity Futures Trading Commission's weekly commitments of traders report also showed that noncommercial traders, a category that includes hedge funds, trimmed their net short position in CBOT wheat and cut their net long position in soybeans.

MARKET NEWS

Oil prices eased on Monday after U.S. President Donald Trump said the United States would begin an effort to free up ships stranded in the Strait of Hormuz, however the lack of a U.S.-Iran peace deal kept prices supported above $100. O/R

DATA/EVENTS (GMT)

0750 France HCOB Manufacturing PMI Apr

0755 Germany HCOB Manufacturing PMI Apr

0800 EU HCOB Manufacturing Final PMI Apr

1400 US Factory Orders MM Apr