June 29 (Reuters) – U.S. wheat prices fell
again on Tuesday, extending the previous session’s 1.5 percent
loss to trade near their lowest level in more than two weeks on
reports of high quality crops from the United States.
Corn prices also edged down nearly one percent, holding near
an eight-month trough, under pressure from benign growing
weather and the prospect of a bumper harvest. Crop conditions in
the United States point to a record corn crop as well as
soybeans being at a near record level.
Key USDA plantings and stocks reports on the government’s
estimate for U.S. supply of wheat, corn and soybeans will be
released on Wednesday.
Also capping sentiment was renewed strength of the dollar
against the euro, which hit $1.22 on worries about the expiry of
a key euro zone refinancing programme this week.
Investors also focused on Monday’s statement from the CME
Group that it will raise storage rates on deliverable
wheat futures, which could trigger more deliveries ahead of the
July contract.
However, weather conditions in Australia are turning more
supportive, and weak prices may deter some wheat farmers.
“The weather in Australia has been pretty cold and if you
haven’t planted wheat yet you are behind the eightball, leaving
yourself open to a rain-affected harvest,” a Sydney-based trader
said.
“Wheat prices are pretty poor and I think a lot of the guys
who have the choice and would have grown wheat may be looking at
cotton.”

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