Wheat Futures Decline

By Victoria Sizemore Long, The Kansas City Star, Mo.

May 24–Kansas City and Chicago wheat futures closed lower Tuesday in a correction from recent sharp gains.

Chicago corn futures also fell; soybeans were moderately higher.

Wheat futures turned lower on profit-taking at midsession, retreating from contract highs in volatile trade. Prices rose early in reaction to updated crop condition ratings.

The U.S. Department of Agriculture on Monday said 30 percent of the U.S. winter wheat crop was in good to excellent condition, down from 36 percent a week ago. In Kansas, the leading U.S. wheat producer, 22 percent of the crop was in good to excellent condition, down from 25 percent a week ago. Forty-four percent of the crop was rated poor to very poor.

There was speculation among traders that Kansas, which is expected to produce 319 million bushels of hard red winter wheat this year, might produce less than 300 million bushels.

Corn futures also fell after early gains, pressured partly by declines in the wheat market. Corn rose in early trade, helped by higher trends in gold and crude oil.

Meanwhile, hot weather forecast for the U.S. corn growing region was seen as beneficial to the crop by some traders, while others said that it could stress the newly seeded crop.

In its first condition rating of the new U.S. corn crop, the government said Monday that 66 percent of the crop was in good to excellent condition, ahead of the five-year average. As of Sunday, 92 percent of the crop had been planted.

Soybeans rose as the market rebounded from Monday’s declines. Spillover strength from gold and crude oil also provided support.

But gains were limited, with overall good weather in Midwest soybean growing regions and active planting of the new U.S. soybean crop hanging over the market.

The government said Monday that 55 percent of the new U.S. soybean crop had been planted as of Sunday, which was above trade expectations.

To reach Victoria Sizemore Long, call (816) 234-4374 or send e-mail to vlong@kcstar.com .

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