GRAINS-Chicago grains ease on rain forecasts and Mideast tensions
By Gus Trompiz and Naveen Thukral
PARIS/SINGAPORE, May 5 (Reuters) - Chicago wheat, corn and soybean futures edged lower on Tuesday, snapping a two-session rally, as traders assessed uncertainties and tensions surrounding the Strait of Hormuz and forecasts indicating rain in U.S. crop belts.
The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 was down 0.6% at $6.37-1/2 a bushel by 0958 GMT.
CBOT soybeans Sv1 were 0.3% lower at $12.19-1/2 a bushel, edging back from a seven-week peak struck on Monday. Corn Cv1 ticked down 0.4% to $4.83-3/4 a bushel after hitting a one-year high earlier in the session.
Crude oil eased on Tuesday and investors took some comfort from news that a U.S.-flagged vessel had exited the Gulf under U.S. protection, though military incidents on Monday underscored ongoing shipping disruptions. O/R
"Crude oil is in the driver's seat, but investors are increasingly focused on the knock-on effects for inflation," Peak Trading Research said of agricultural commodities.
Conflict-driven fluctuations in oil prices have influenced grain markets, as corn and soyoil are widely used for biofuel. Additionally, rising fuel and fertiliser prices due to shipping constraints are likely to hit agricultural production.
Meanwhile, forecasts of rains in some U.S. wheat zones this week were also curbing wheat prices, though showers may come too late for areas where the drought has already done irreversible damage, traders said.
The U.S. Department of Agriculture's weekly report said 31% of the nation's winter wheat crop was in good to excellent condition, up from 30% last week but still the lowest for this time of the year since 2023.
Last week, Chicago wheat rose to its highest in nearly two years amid concerns over weather damage to U.S. crops.
The expected rain has also raised worries about delays to corn and soybean planting, though the USDA's weekly report showed planting progress was ahead of the five-year average.
In South America, Brazil's soybean production is expected to reach 181.6 million metric tons in 2025/26, consultancy firm StoneX said on Monday, raising its outlook by around 1% from an April projection.
Prices at 0958 GMT |
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| Last | Change | Pct Move |
CBOT wheat Wv1 | 637.50 | -3.50 | -0.55 |
CBOT corn Cv1 | 483.75 | -2.00 | -0.41 |
CBOT soy Sv1 | 1219.50 | -3.25 | -0.27 |
Paris wheat BL2c1 | 189.25 | -1.75 | -0.92 |
Paris maize EMAc1 | 226.50 | 1.25 | 0.55 |
Paris rapeseed COMc1 | 526.00 | -2.00 | -0.38 |
WTI crude oil CLc1 | 104.00 | -2.42 | -2.27 |
Euro/dollar EUR= | 1.17 | 0.00 | -0.01 |
Most active contracts - Wheat, corn and soy U.S. cents/bushel, Paris futures in euros per metric ton | |||
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