Chicago wheat, corn, and soybean futures eased on Monday as the market awaited updates on crop conditions after adverse weather in Brazil and Russia that triggered gains late last week.
The most-active soybean contract on the Chicago Board of Trade (CBOT) was down 0.1% at $12.13-1/2 a bushel, after climbing to a high of $12.19, the highest since March 21. CBOT corn lost 0.3% to $4.58-3/4 a bushel, retreating from a four-month peak of $4.68 on Friday, while wheat fell 1.5% to $6.13 a bushel after climbing near a four-month top at $6.32-1/2.
Wheat led the losses after failing to surpass highs from late April and as concerns over weekend frost in Russia subsided. The outlook for the soybean harvest in Brazil’s Rio Grande do Sul is deteriorating after torrential rains flooded fields, with about a quarter of beans left to harvest. The deluge may also reduce the state’s corn volumes and further clip South American supply after downgrades to estimates of Argentina’s crop.
Wheat prices have been buoyed by dry weather in major exporter Russia as well as part of the U.S. Plains. Traders are monitoring weather forecasts and further estimates of crop damage.
The market will get an update from the U.S. Department of Agriculture later on Monday on wheat conditions and planting progress for corn and soy, followed by monthly world supply and demand projections on Friday.
Russia’s IKAR agricultural consultancy has cut its forecast for Russia’s wheat crop to 91 million metric tons from 93 million tons, citing the impact of the cold weather that brought light frosts to southern Russia over the weekend.
The weather risks in major production zones have prompted investors to cover some of their large short position in grain futures that they had built up when prices fell to their lowest since 2020 earlier this year.