PARIS/SINGAPORE - Chicago corn, wheat and soybean futures eased on Monday, giving up some of the previous session's gains as crop-friendly weather in the U.S. Midwest put the focus back on the prospect of hefty supplies.
Corn had led a slide in Chicago grain futures for most of last week after a higher than expected U.S. Department of Agriculture (USDA) estimate of this year's U.S. corn crop, with a stronger dollar and the continuing trade dispute between Washington and Beijing adding to price pressure. GRA/
CBOT soybeans were down 0.7% at $8.73-1/2 a bushel, having firmed 1% on Friday, while CBOT wheat shed 0.8% to $4.73 a bushel after closing 1.8% up in the previous session.
"Seems it was a weekend of pretty favourable weather in the U.S. Midwest," said Phin Ziebell, agribusiness economist at National Australia Bank. "Fingers crossed, the season is looking better."
A benign mix of showers and mild temperatures over the weekend was forecast to continue this week, which could help dry parts of the eastern Midwest and generally boost crop growth after rain-delayed spring planting.
The market will receive further clues on harvest prospects from weekly USDA crop ratings later on Monday as well as results from a major grain industry tour of Midwest fields this week.
Some market participants view the USDA's corn estimates as too high and caution that late-developing corn and soybeans will also be vulnerable to early autumn frosts.
However, analysts say that any downward revisions to the U.S. harvest could have limited price impact given large global supplies and the U.S.-China trade tussle, which has curbed U.S. soybean exports.
"Amid the ongoing trade disputes between the U.S. and China, high stocks and the expectation of a high South American crop, many market participants see no reason to believe in any lasting price recovery," Commerzbank said in a note.
U.S. President Donald Trump on Sunday said he was not yet ready to reach a trade deal with Beijing, citing a buoyant U.S. economy.
Large speculators cut their net long position in CBOT corn futures in the week ended Aug. 13, regulatory data showed on Friday.
The Commodity Futures Trading Commission's weekly commitments of traders report also showed that non-commercial traders, a category that includes hedge funds, increased their net short position in CBOT wheat and trimmed their net short position in soybeans.
Prices at 1136 GMT
Last Change Pct End Ytd Pct
Move 2018 Move CBOT wheat Wv1 473.50 -4.00 -0.84 503.25 -5.91 CBOT corn Cv1 374.75 -6.00 -1.58 375.00 -0.07 CBOT soy Sv1 873.50 -6.25 -0.71 895.00 -2.40 Paris wheat Dec BL2Z9 172.00 -1.50 -0.86 191.25 -10.07 Paris maize Nov EMAX9 166.75 -1.25 -0.74 175.25 -4.85 Paris rape Nov COMX9 379.75 -0.25 -0.07 364.00 4.33 WTI crude oil CLc1 55.01 0.14 0.26 45.41 21.14 Euro/dlr EUR= 1.11 0.00 0.08 1.1469 -3.23 Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne
(Reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore, Editing by Sherry Jacob-Phillips and David Goodman) ((firstname.lastname@example.org; +33 1 49 49 52 18; Reuters Messaging: email@example.com))