* Rains in parched U.S. winter crop areas bearish for wheat
* Deal with EU countries on transit for Ukrainian grain
SINGAPORE, May 1 (Reuters) – Chicago wheat futures slid
on Monday, with prices trading close to last week’s lowest in
almost two years, as rain in the U.S. Plains improved the
outlook for crops.
Corn prices also lost ground.
“While there will need to be more rain in the central and
southern Plains…, a wave of precipitation certainly leaves a
bearish element in the market,” commodities research firm
Hightower said in a report.
The most-active wheat contract on the Chicago Board of Trade
(CBOT) fell 1.1% to $6.27 a bushel, as of 0900 GMT after
dipping on Friday to a low of $6.24-1/4 – the weakest level
since July 2021.
Recent rain in the drought-hit U.S. Plains and forecasts for
more have eased concerns about hard red winter wheat production.
In a sign that more Ukrainian grain may hit the market, the
European Commission said on Friday it had reached a deal in
principle to allow the transit of Ukrainian grain to resume
through five European Union countries that had imposed
restrictions.
Egypt, one of the world’s top wheat importers, said on
Saturday it was strongly considering approving the currencies of
its commodity trading partners, including major wheat exporter
Russia, to try to reduce the need for dollars.
Paris-based Euronext wheat futures were closed on Monday due
to a public holiday in France and several other European
countries.
CBOT corn slipped 0.3% to $5.83-1/2 a bushel while
soybeans rose by a marginal 0.02% to $14.19-1/2 a bushel.
The corn market is facing headwinds as a large Brazilian
crop is eating into demand for U.S. supplies.
A bumper Brazilian soybean crop is also expected to flow
onto export markets, offsetting a drought-hit harvest in
Argentina.
Large speculators increased their net short position in
Chicago Board of Trade corn futures in the week to April 25,
regulatory data released on Friday showed.
The Commodity Futures Trading Commission’s weekly
commitments of traders report also showed that non-commercial
traders, a category that includes hedge funds, increased their
net short position in CBOT wheat and cut their net long position
in soybeans.
(Additional reporting by Nigel Hunt in London; editing by
Uttaresh Venkateshwaran and Susan Fenton)
