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Rains in parched U.S. winter crop areas bearish for wheat
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Deal with EU countries on transit for Ukrainian grain
(Adds quote in paragraph 3, updates prices)
By Naveen Thukral
SINGAPORE, May 1 (Reuters) - Chicago wheat futures slid
on Monday, with prices trading close to last week's lowest in
almost two years, as rain in the U.S. Plains and easing concerns
over Ukrainian supplies weighed on the market.
Corn and soybeans lost ground.
"While there will need to be more rain in the central and
southern Plains..., a wave of precipitation certainly leaves a
bearish element in the market," commodities research firm
Hightower said in a report.
The most-active wheat contract on the Chicago Board of Trade
(CBOT) lost 0.7% to $6.29-1/2 a bushel, as of 0212 GMT and
corn gave up 0.4% to $5.82-1/2 a bushel. Soybeans fell 0.2% at $14.16-1/4 a bushel.
Recent rain in the drought-hit U.S. Plains and forecasts for
more have eased concerns about hard red winter wheat production.
In a sign more Ukrainian grain may hit the market, the
European Commission said on Friday it had reached a deal in
principle to allow the transit of Ukrainian grain to resume
through five European Union countries that had imposed
restrictions.
The corn market is facing headwinds as a large Brazilian
crop is easting into demand for U.S. supplies.
A bumper Brazilian soybean crop is also expected to flow
onto export markets, offsetting a drought-hit harvest in
Argentina.
Large speculators increased their net short position in
Chicago Board of Trade corn futures in the week to April 25,
regulatory data released on Friday showed.
The Commodity Futures Trading Commission's weekly commitments of traders report also showed that noncommercial traders, a category that includes hedge funds, increased their net short position in CBOT wheat and cut their net long position in soybeans. (Reporting by Naveen Thukral; editing by Uttaresh Venkateshwaran)
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