GRAINS-Wheat rises on Russian crop concern; soybeans hit one-month low

Reuters · 06/03 11:32
GRAINS-Wheat rises on Russian crop concern; soybeans hit one-month low

Wheat rises as adverse weather is forecast in Russia

Soybeans and corn fall on U.S. crop report expectations

Recasts with European trade, adds quotes, changes dateline

By Michael Hogan

- Chicago wheat rose on Monday after three sessions of declines, as worries over bad weather damaging Russian crops supported prices that hit 10-month highs last week.

Soybean touched a one-month low, weighed down by expectations that the U.S. government would give a positive picture of U.S. conditions later on Monday, the same factor weakening corn.

The Chicago Board of Trade's most active wheat contract Wv1 rose 1.3% to $6.87-3/4 a bushel by 1126 GMT. It had hit a 10-month high of $7.20 on Tuesday but fell late last week.

Soybeans Sv1 were down 0.8% at $11.94-3/4 a bushel after touching $11.91 earlier in the session for the weakest level since May 2. Corn Cv1 fell 0.3% to $4.44-3/4 a bushel.

Forecasts of a smaller Russian wheat harvest after drought and frost supported prices in May. Russian grain exports will fall to 60 million tons in the coming season from 70 million tons this season, Deputy Prime Minister Dmitry Patrushev said on Friday, citing crop damage.

“Wheat remains supported by concern bad weather could cause more damage to crops in big exporter Russia,” said StoneX commodity risk manager Matt Ammermann. “Following frosts and drought, high temperatures are forecast for south Russian grain belts with only little rain, which could stress wheat.

“Reduced crops that cut Russian exports could open potential for more U.S. export sales. However, despite Russian weather issues, Russian wheat still looks about the cheapest in export markets.”

Soybeans and corn were pushed down by expectations of a good crop progress report by the U.S. Department of Agriculture later on Monday, Ammermann added.

“Overall, U.S. crop weather looks favourable for both soybeans and corn, with some rain forecast this week. U.S. farmers do seem to have suffered too heavily from prevented plantings and seem to have been able to undertake their intended sowings,” he said.

(Reporting by Michael Hogan in Hamburg, additional reporting by Naveen Thukral in Singapore, editing by Varun H K and)

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