SINGAPORE, April 11 (Reuters) – Chicago wheat futures gained more ground on Tuesday, with prices supported by deteriorating condition of the U.S. winter crop and Russia’s threat to bypass a UN-brokered grain deal.
Corn rose as wet weather delayed U.S. planting, although forecasts of warm and dry conditions could boost fieldwork in the days ahead.
FUNDAMENTALS
* The most-active wheat contract on the Chicago Board of Trade (CBOT) added 0.3% at $6.80-3/4 a bushel, as of 0009 GMT. Corn Cv1 gained 0.2% to $6.55 a bushel and soybeans Sv1 rose 0.2% to $14.89-1/2 a bushel.
* Good-to-excellent ratings for U.S. winter wheat deteriorated to tie the lowest on record for this time of year as dry soil continued to stress the crop in the U.S. Plains, the government said.
* The U.S. Department of Agriculture (USDA) in a weekly crop progress report said 27% of winter wheat was in good to excellent condition compared to 28% a week ago – tied for the worst on record for early April.
* Russia on Friday threatened to bypass the UN-brokered grain deal unless obstacles to its agricultural exports were removed, while talks in Turkey agreed removing barriers was a necessary condition to extending the agreement beyond next month.
* Traders were looking to the release of a monthly global supply and demand report from the USDA later on Tuesday.
* The USDA’s weekly report also said farmers made scant progress in their corn and spring wheat planting, with cold temperatures and snow cover across key portions of the Midwest limiting the window for fieldwork.
* Commodity funds were net sellers of CBOT soybean, soyoil and soymeal futures contracts on Monday, traders said. Funds were net buyers of corn and wheat futures, traders said. COMFUND/CBT
MARKET NEWS
* U.S. stocks closed mostly flat and the dollar rose on Monday after strong jobs data last week pointed to the Federal Reserve hiking interest rates in May, while the yen eased after Japan’s new central bank governor vowed to maintain ultra-loose policy. MKTS/GLOB
DATA/EVENTS (GMT)
0130 China PPI, CPI YY March
(Reporting by Naveen Thukral; Editing by Subhranshu Sahu)
((naveen.thukral@thomsonreuters.com; +65-6870-3829; Reuters Messaging: naveen.thukral.thomsonreuters.com@reuters.net))
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