By Cassandra Garrison

MEXICO CITY, April 4 (Reuters)Chicago grains futures closed lower on Tuesday as traders took profits, analysts said, while improving weather forecasts eased concerns about planting in the United States.

Blizzard warnings were posted on Tuesday across most of the northern Plains spring wheat belt, but forecasts called for a turn to warmer and drier conditions later this week that should help melt snow in the region ahead of planting.

“We’ve been on a pretty good ride,” said Jack Scoville, market analyst at The Price Futures Group. “With the lack of any bullish news here, the market seems content to take some profits.”

Corn eased as forecasts for dry weather in key parts of the U.S. Midwest boosted planting prospects. Soybeans also declined on optimism that planting weather will improve after expected storms this week, traders said.

The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 settled down 2 cents at $6.91-1/4 per bushel as an improving weather outlook tempered concerns about poor U.S. winter crop conditions and Black Sea exports.

CBOT corn Cv1 dipped 4 cents to $6.53-3/4 a bushel and soybeans Sv1 settled down 4-1/2 cents at $15.17-1/2 per bushel.

The U.S. Department of Agriculture (USDA) in its first weekly crop progress report of the 2023 growing season rated 28% of U.S. winter wheat in “good-to-excellent” condition, the lowest score for the time of year in records dating to 1989.

Analysts surveyed by Reuters on average had expected the government to rate 31% of the crop as good-to-excellent.

“This confirms that the winter weather has been severe along with another water deficit,” consultancy Agritel said in a note.

Wheat markets are also being underpinned by uncertainty over Black Sea export supplies.

Corn planting was 2% complete, in line with last year, USDA’s crop report showed on Monday.

(Reporting by Cassandra Garrison in Mexico City, Gus Trompiz in Paris and Naveen Thukral in Singapore; Editing by Shweta Agarwal, Jonathan Oatis and Sandra Maler)

((gus.trompiz@thomsonreuters.com; +33 1 49 49 52 18; Reuters Messaging: gus.trompiz.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


Source link

Leave a Reply

Your email address will not be published. Required fields are marked *