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Wheat at 6-week low on crop-friendly conditions, soybeans firm

Chicago wheat futures slid for a second session on Tuesday to a six-week low after the U.S. Department of Agriculture (USDA) rated the condition of the winter crop ahead of market expectations.

Soybeans firmed after closing lower in the last two sessions, with prices supported by expectations of a Washington-Beijing trade deal.

The most-active wheat contract on the Chicago Board Of Trade gave up 1.2 percent to $4.30 a bushel, as of 0246 GMT, after hitting its weakest since March 12 at $4.29-1/4 a bushel.

Corn was down 0.2 percent at $3.61 and soybeans were up 0.1 percent at $8.61-1/2 a bushel.

“Weather is very good everywhere for the wheat crop,” said one Singapore-based trader. “Asian millers are waiting and not buying as there could be further decline in prices.”

Beneficial crop weather in the southern U.S. Plains hard wheat belt, and key wheat production areas around the globe, including top exporter Russia, are dragging down wheat prices.

The USDA, in weekly report, said 64 percent of the U.S. winter wheat crop is in good-to-excellent condition, ahead of market forecasts and above last year’s 33 percent at this time of the year.

The agency said 15 percent of the U.S. corn crop has been planted, slightly ahead of market expectations.

It pegged U.S. soybean planting at 3 percent, slightly behind market forecasts.

More rain is expected across the Midwest in the coming days, which could lengthen river flooding woes and is threatening to prolong spring planting delays.

Expectations of U.S.-China trade deal supported beans.

International Monetary Fund Managing Director Christine Lagarde said on Monday she expects the United States and China to reach a deal to end their trade dispute, which has unnerved financial markets and cast a shadow over the global economy.

Brazil’s 2018/19 soybean crop is poised to be the second-largest on record, a Reuters poll showed.

Commodity funds were net buyers of CBOT corn and soyoil futures contracts on Monday and net sellers of soybeans, soymeal and wheat, traders said.

Grains prices at 0246 GMT

 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  430.00  -5.25   -1.21%   -2.60%       462.13  21
 CBOT corn   361.00  -0.75   -0.21%   +1.05%       372.02  39
 CBOT soy    861.50  0.75    +0.09%   +0.26%       890.11  19
 CBOT rice   10.63   $0.00   +0.00%   +2.02%       $10.88  46
 WTI crude   63.43   -$0.07  -0.11%   -2.73%       $62.40  
 Currencies                                                
 Euro/dlr    $1.119  $0.004  +0.36%   +0.52%               
 USD/AUD     0.7048  0.001   +0.13%   +0.50%

Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight RSI 14, exponential
Source: Reuters (Reporting by Naveen Thukral; editing by Uttaresh.V)

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