Investing.com - U.S. grain futures were lower during European morning trade on Tuesday, with wheat prices falling more than 2% as beneficial rain in key grain-growing regions in Ukraine and Russia helped ease drought concerns.
Elsewhere, corn and soybean prices edged lower, as investors shunned riskier assets after ratings agency Fitch downgraded Japan to A+ and issued a negative outlook on the country's credit rating.
Traders were also cautious ahead of Wednesday’s summit of European leaders, amid concerns over a divide between France's new President Francois Hollande, who favors measures designed to support growth and pro-austerity Germany.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was up 0.36% to trade at 81.38.
A stronger dollar reduces the appeal of U.S. crops to overseas buyers and makes commodities less attractive as an alternative investment.
On the Chicago Mercantile Exchange, wheat for July delivery traded at USD6.8863 a bushel during European morning trade, tumbling 2.1%.
It earlier fell by 2.15% to trade at a session low of USD6.8850 a bushel. Prices touched USD7.2138 a bushel on Monday, the highest since September 13, 2011.
Wheat prices soared nearly 14% last week, their biggest weekly gain in 16 years.
Prices jumped more than 5.5% on Friday amid ongoing concerns over hot and dry weather in the U.S. Great Plains-region and in Russia, which could potentially threaten yields and reduce the quality of the harvest.
But investors cashed out of the market on forecast of beneficial crop weather in the Black Sea-region. Weather service provider Accuweather said that it expected parts of Russia and Ukraine to get much needed rainfall in the next 48 hours.
Russia, once the world's third largest grain exporting nation, introduced an 11-month ban on grain exports in August 2010 after the worst drought in at least half a century wiped out a third of its grain crops.
Prices are up nearly 15% since touching a four-month low of USD5.9237 on May 14, boosted by concerns over dry weather in overseas wheat-producing regions and a less-optimistic government assessment of the U.S. winter-wheat crop.
Wheat traders shrugged off a report from the U.S. Department of Agriculture showing that wheat crops conditions in Kansas, the largest U.S. wheat producer, deteriorated this past week by the biggest ratings margin in 4-1/2 years as dry weather continued to grip the state.
Meanwhile, corn futures for July delivery traded at USD6.2713 a bushel, falling 0.9%. It earlier fell by as much as 0.95% to trade at USD6.2700 a bushel.
Corn prices declined, as selling pressure from the wheat market spilled over to corn. Wheat and corn prices are linked because both can be used as animal feed.
U.S. farmers had planted 96%b of the corn crop as of last week, topping analyst expectations. Since corn seeding was virtually complete, the USDA will not release another planting update for that crop this year.
The agency also rated the corn crop 77% ‘good’ to ‘excellent’, its first condition rating for this year's crop.
Elsewhere on the Chicago Board of Trade, soybeans futures for July delivery traded at USD14.0700 a bushel during European morning trade, dipping 0.45%. It earlier fell by as much as 0.75% to trade at a daily low of USD14.0513 a bushel.
Farmers had planted 76% of the soybean crop as of Sunday, up from 46% a week ago.
Soy prices are down nearly 7% since touching a four-year high of USD15.1237 a bushel on May 2, as hedge funds and large institutional investors unwound long positions to secure gains from an impressive 19% rally in the first five months of the year.
Market analysts expect an ever deeper drop heading into the summer, as the soy harvest in South America nears completion and higher prices eventually reduce the amount of Chinese purchases.
Corn is the biggest U.S. crop, valued at USD66.7 billion in 2010, followed by soybeans at USD38.9 billion, government figures show. Wheat was fourth at USD13 billion, behind hay.
Elsewhere, corn and soybean prices edged lower, as investors shunned riskier assets after ratings agency Fitch downgraded Japan to A+ and issued a negative outlook on the country's credit rating.
Traders were also cautious ahead of Wednesday’s summit of European leaders, amid concerns over a divide between France's new President Francois Hollande, who favors measures designed to support growth and pro-austerity Germany.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was up 0.36% to trade at 81.38.
A stronger dollar reduces the appeal of U.S. crops to overseas buyers and makes commodities less attractive as an alternative investment.
On the Chicago Mercantile Exchange, wheat for July delivery traded at USD6.8863 a bushel during European morning trade, tumbling 2.1%.
It earlier fell by 2.15% to trade at a session low of USD6.8850 a bushel. Prices touched USD7.2138 a bushel on Monday, the highest since September 13, 2011.
Wheat prices soared nearly 14% last week, their biggest weekly gain in 16 years.
Prices jumped more than 5.5% on Friday amid ongoing concerns over hot and dry weather in the U.S. Great Plains-region and in Russia, which could potentially threaten yields and reduce the quality of the harvest.
But investors cashed out of the market on forecast of beneficial crop weather in the Black Sea-region. Weather service provider Accuweather said that it expected parts of Russia and Ukraine to get much needed rainfall in the next 48 hours.
Russia, once the world's third largest grain exporting nation, introduced an 11-month ban on grain exports in August 2010 after the worst drought in at least half a century wiped out a third of its grain crops.
Prices are up nearly 15% since touching a four-month low of USD5.9237 on May 14, boosted by concerns over dry weather in overseas wheat-producing regions and a less-optimistic government assessment of the U.S. winter-wheat crop.
Wheat traders shrugged off a report from the U.S. Department of Agriculture showing that wheat crops conditions in Kansas, the largest U.S. wheat producer, deteriorated this past week by the biggest ratings margin in 4-1/2 years as dry weather continued to grip the state.
Meanwhile, corn futures for July delivery traded at USD6.2713 a bushel, falling 0.9%. It earlier fell by as much as 0.95% to trade at USD6.2700 a bushel.
Corn prices declined, as selling pressure from the wheat market spilled over to corn. Wheat and corn prices are linked because both can be used as animal feed.
U.S. farmers had planted 96%b of the corn crop as of last week, topping analyst expectations. Since corn seeding was virtually complete, the USDA will not release another planting update for that crop this year.
The agency also rated the corn crop 77% ‘good’ to ‘excellent’, its first condition rating for this year's crop.
Elsewhere on the Chicago Board of Trade, soybeans futures for July delivery traded at USD14.0700 a bushel during European morning trade, dipping 0.45%. It earlier fell by as much as 0.75% to trade at a daily low of USD14.0513 a bushel.
Farmers had planted 76% of the soybean crop as of Sunday, up from 46% a week ago.
Soy prices are down nearly 7% since touching a four-year high of USD15.1237 a bushel on May 2, as hedge funds and large institutional investors unwound long positions to secure gains from an impressive 19% rally in the first five months of the year.
Market analysts expect an ever deeper drop heading into the summer, as the soy harvest in South America nears completion and higher prices eventually reduce the amount of Chinese purchases.
Corn is the biggest U.S. crop, valued at USD66.7 billion in 2010, followed by soybeans at USD38.9 billion, government figures show. Wheat was fourth at USD13 billion, behind hay.