Chicago wheat gained more ground on Tuesday, with the market trading near its highest since late February after a U.S. report showed decline in winter crop rating, raising concerns over supplies.
Soybeans edged higher, recouping last session's losses, while corn rose for a second session.
FUNDAMENTALS
* The most-active wheat contract on the Chicago Board of Trade (CBOT) ZW1! added 0.6% to $5.71-3/4 a bushel, as of 0007 GMT, not far from its highest since February 27 reached on Monday.
* Soybeans ZS1! rose 0.1% to $10.16-3/4 a bushel and corn
ZC1! gained 0.2% at $4.61-3/4 a bushel.
* The U.S. Department of Agriculture on Monday rated 48% of the winter wheat in top producer Kansas in "good to excellent" condition, down from 52% the previous week.
* With the harvest still about three months away, the U.S. winter wheat crop is breaking dormancy and resuming growth, a time when the need for moisture typically increases. Forecasts called for mostly dry weather this week in the southern Plains.
* There could be additional damage to U.S. crops from wind storms and tornadoes that tore through the Midwest and Plains states over the weekend.
* Lower shipments from the world's top wheat exporter Russia have already tightened supplies. Russia's March wheat exports are estimated to fall, consultancy Sovecon said on Monday.
* Gains in soybeans were limited as the National Oilseed Processors Association crush came out below a range of trade estimates. U.S. soy processors crushed the smallest volume of soybeans in five months during February, according to data released on Monday.
* Brazil's soybean harvest for the 2024/25 season reached 70% of the planted area as of last Thursday, agribusiness consultancy AgRural said on Monday, representing the strongest pace for this time of year in at least 14 years.
* Commodity funds were net sellers of CBOT corn, soybean and soymeal futures contracts on Monday, traders said. Funds were net buyers of wheat and soyoil futures. (COMFUND/CBT)
MARKET NEWS
* Wall Street stocks ended higher and gold held near $3,000 per ounce on Monday after mixed economic data and ahead of talks between U.S. President Donald Trump and Russian President Vladimir Putin aimed at ending the Ukraine war.
DATA/EVENTS (GMT)
1000 EU Total Trade Balance SA Jan
1000 Germany ZEW Economic Sentiment, Current Conditions Mar
1230 US Housing Starts Number, Import Prices YY Feb
1315 US Industrial Production MM Feb