SOYB - Wheat futures sink on U.S. Plains rains ample global supplies

2023-05-01 18:46:28 ET

U.S. wheat futures continued their negative momentum of the past month on Monday, touching fresh 22-month lows on plentiful global supplies, sluggish demand for U.S. exports, and rains in the Plains and Midwest.

Expectations for a stronger Crop Progress report and minimal concern about Russia's participation in a renewed BlackSea grain deal also weighed on wheat futures .

Soft red winter wheat futures ( W_1:COM ) on the Chicago Board of Trade settled -2.5% to $6.18 1/4 per bushel after touching the lowest level for a most-active contract since July 2021 during the session.

Also, corn (C_1;COM) for July delivery closed -0.1% to $5.85 1/2 per bushel, and July soybeans ( S_1:COM ) settled +0.6% to $14.28 per bushel.

ETFs: ( NYSEARCA: WEAT ), ( CORN ), ( SOYB ), ( NYSEARCA: DBA ), ( MOO )

U.S. grain futures fell sharply in April, with the continuous corn contract sliding 11.5%, the soybean contract slumping 6.8% and wheat tumbling 8.4%, with falling prices for Brazilian exports seen as a major source of pressure.

After the close of trading, the U.S. Department of Agriculture released its latest Crop Report, which rated 28% of U.S. winter wheat in good to excellent condition, in line with expectations and up two percentage points from last week following rains in the Plains, but still among the lowest on record for this time of year.

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