Reuters
2022.06.22 00:04

GRAINS-Wheat falls on harvest pressure; corn, soybean drop

(Recasts, updates with U.S. trading, adds new analyst quote; pvs PARIS/SINGAPORE)

(Recasts, updates with U.S. trading, adds new analyst quote; pvs PARIS/SINGAPORE)

By Mark Weinraub

CHICAGO, June 21 (Reuters) - U.S. wheat futures fell 3.1% to their lowest level in 2-12 months on Monday as early harvesting in U.S. and European grain belts created supply pressure and turned attention away from war disruption to Black Sea exports.

Corn futures were down 2.5% as weather forecasts for late June and early July, a key period of crop development for crops in the U.S. Midwest, turned cooler.

The drop in corn weighed on soybeans, which hit their lowest since June 1 and were on track to close in negative territory for their sixth time in seven sessions.

At 10:53 a.m. CDT (1553 GMT), Chicago Board of Trade July soft red winter wheat (WN2) was down 32-14 cents at $10.02 a bushel. Prices bottomed out at $9.99, their lowest since April 4.

“The start of the wheat harvest in the U.S. and Europe is generating additional price pressure,” Commerzbank analysts said in a note. “Consequently, less attention is being paid – at least temporarily – to the outage in Ukrainian wheat exports.”

The U.S. Agriculture Department will provide an update on the progress of the wheat harvest at 3 p.m. CDT (2000 GMT). The USDA also will report corn and soybean crop conditions.

Traders shrugged off a heat wave that descended over the Midwest during the weekend as it sped up the growth of crops that were seeded late.

“Many in the trade believe that warm temperatures in the early stages of plant development could be beneficial and that a little rain along with it should put the crop in great shape to close out the month,” Tomm Pfitzenmaier, analyst for Summit Commodity Brokerage, said in a note to clients.

CBOT July corn (CN2) was off 19-34 cents at $7.64-34 a bushel and CBOT July soybeans (SN2) were down 13-12 cents at $16.88-12 a bushel.

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