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Drought likely to negatively impact Kansas City wheat
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Russia threatens West as Turkey seeks grain deal extension
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Markets await monthly supply and demand report from USDA
(Adds closing prices, changes headline, changes lead, adds
weekly crop progress)
By Cassandra Garrison
MEXICO CITY, April 10 (Reuters) - Chicago wheat futures
were higher on Monday, as dry weather put Kansas City wheat at
risk and Russia's threat to bypass a UN-brokered grain deal
underpinned prices, traders said.
Corn also closed higher, though soybeans dipped as warm and
dry weather improved the planting outlook in the United States,
analysts said.
"In the western part of the belt where all that high
protein wheat is, they need rain, so it's push and pull," said
Craig Turner, a commodities broker at Daniels Trading.
The U.S. Agriculture Department's 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.
The most-active wheat contract on the Chicago Board of Trade (CBOT) settled up 3 cents at $6.78-1/2 per bushel, while K.C. May hard red winter wheat closed 11.5 cents higher at $8.76 a bushel.
Corn settled up 10-1/2 cents at $6.54 per bushel, while soybeans closed down 5-1/2 cents at $14.87-1/4 per bushel.
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. Ukraine's grain exports for the 2022/23 season were at 38.8 million tonnes as of April 10, Agriculture Ministry data showed on Monday. The volume so far in the current July-to-June season included about 13.3 million tonnes of wheat, 22.8 million tonnes of corn and 2.31 million tonnes of barley.
Traders were looking to the release of a monthly global supply and demand report from the U.S. Department of Agriculture on Tuesday. "Markets are going to be looking for the USDA to reduce South American production to get more in line with what the reporting agencies in Argentina and Brazil have been saying," Turner said.
"Once they do, that likely increases U.S. exports," he
added.
(Reporting by Cassandra Garrison in Mexico City and Naveen
Thukral in Singapore, Additional reporting by Nigel Hunt in
London; Editing by Subhranshu Sahu, Nivedita Bhattacharjee,
Kirsten Donovan and Deepa Babington)
