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U.S. wheat crop ratings at lowest since 1989 - USDA
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Dry weather seen boosting U.S. corn planting
SINGAPORE, April 4 (Reuters) - Chicago wheat futures gained more ground on Tuesday, with lower-than-expected rating of the U.S. winter crop raising concerns over global supplies.
Corn eased as forecasts of dry weather in key parts of the U.S. Midwest boosted planting prospects, while soybeans were largely unchanged.
"The weather outlook continues to shift drier with no rain in the five-day forecast for Kansas, and both 6-10 and 8-14 day models call for below normal precipitation with above normal temperatures," commodities research firm Hightower said in a report, referring to the weather for key U.S. wheat growing regions.
The most-active wheat contract on the Chicago Board of Trade (CBOT) gained 0.4% at $6.96-1/4 a bushel, as of 0251 GMT. Corn dipped 0.2% to $6.56-1/2 a bushel and soybeans added half a cent to $15.22-1/2 a 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 for this time of year in records dating to 1989, as drought persists in key portions of the Plains wheat belt.
The figures fell below most analysts' expectations. Eight analysts surveyed by Reuters on average had expected the government to rate 31% of the crop as "good-to-excellent", with estimates ranging from 25% to 36%.
Adding to global supply concerns, Louis Dreyfus Company will stop exporting Russian grain from July 1, the group said on Monday, joining other merchants in dropping activities in the world's biggest wheat-exporting country.
Export prices for Russian wheat halted a multi-week decline as major Western traders said they would stop handling Russian grain exports, and following a report that Russia's agriculture ministry had issued unofficial guidance to support export prices.
The forecast for the central U.S. corn belt showed drier conditions over the next two weeks. Corn planting was 2% complete, in line with last year, the plant progress report showed.
Brazilian farmers had harvested 76% of the soybean area planted for 2022/23 through last Thursday, agribusiness consultancy AgRural said on Monday, up six percentage points from the previous week.
At the same time last year, 81% of the Brazilian soy fields had been reaped, said AgRural.
Commodity funds were net buyers of CBOT soybean, corn, soyoil, and wheat futures contracts and net sellers of soymeal futures contracts on Monday, traders said. (Reporting by Naveen Thukral; Editing by Sherry Jacob-Phillips and Subhranshu Sahu)
