Wheat dips as new demand awaited, soybeans and corn drift

Chicago wheat fell on Monday with little new demand visible after a flurry of big purchases in international tenders last week.

Soybeans and corn drifted lower as dealers awaited developments for crop conditions in major exporters Brazil and Argentina with harvests close.

Chicago Board of Trade most active wheat fell 0.7% to $5.89 a bushel at 1216 GMT. Soybeans fell 0.08% to $12.12-1/4 a bushel, corn fell 0.06% to $4.45-1/4 a bushel.

Wheat demand was quiet on Monday after over 1.5 million metric tons was bought last week in international tenders with buyers including Algeria, Egypt, Tunisia, Jordan and Lebanon with only Jordan tendering for wheat so far this week.

“There is some disappointment about lack of demand which is weakening wheat markets today,” said Matt Ammermann, StoneX commodity risk manager.

“After a series of big international purchase tenders from importers including Algeria and Egypt last week, new demand looks slow so far this week. Markets are also taking a relaxed view of the political tensions in the Middle East including the recent attacks on shipping in the Red Sea.”

U.S. corn on Friday fell for the sixth consecutive week and soybeans declined the fifth week in a row after expectations for plentiful supplies pushed the markets to multi-year lows on Thursday.

Traders continue to monitor crop conditions in South America after analysts slashed estimates for Brazil’s soybean crop due to earlier hot, dry weather. Drought fears have eased due to recent rains, though, and bumper harvests are expected elsewhere in South America including Argentina.

“In soybeans, attention remains on the Brazilian harvest, with favourable weather still in place for both soybeans and corn,” Ammermann said. “There also seems to be little reason for concern about crop weather in Argentina so far this week.”

Tags: soybeans, wheat, purchases, demand, tenders, corn