Investing.com - Wheat futures edged lower on Tuesday, as traders continued to monitor La Nina weather patterns in major wheat-producing countries in South America ahead of Thursday’s U.S. government report on global inventories of the grain.
On the Chicago Mercantile Exchange, wheat futures for March delivery traded at USD6.3900 a bushel during early European afternoon trade, shedding 0.34%.
It earlier fell by as much as 0.83% to trade at a session low USD6.3525 a bushel.
Wheat futures have rallied nearly 11% over the past three weeks amid lingering concerns over the South American wheat crop outlook.
The heat of the Southern Hemisphere's summer has been compounded by La Niña, a phenomenon in which tropical waters in the Pacific Ocean turn unusually cold.
The La Nina weather pattern typically brings heavier rainfall in Asia and drier weather in South America.
But prices came under pressure after Australia’s Bureau of Meteorology said earlier that the ongoing La Nina weather event “is at or nearing its peak”.
“While the system remains established over the Pacific Basin, strength indicators have weakened slightly from last week,” the bureau said.
Weather forecasts pointed to rainfall across major wheat-growing areas in the Pampas region in Argentina this week, however concerns remained that the nation’s wheat crops have already suffered irreversible damage.
Meanwhile, markets were looking forward to Thursday’s closely-watched U.S. Department of Agriculture’s World Supply and Demand Report for revised forecasts of South American crop production.
Traders have been focusing on crop prospects in Southern Hemisphere countries in recent weeks, as most Northern Hemisphere grain crops have been harvested by now.
South America is the main competition for U.S. exporters and a smaller crop outlook there would likely mean greater demand for U.S. supplies.
Elsewhere on the Chicago Mercantile Exchange, corn for March delivery dipped 0.15% to trade at USD6.5162 a bushel, while soybeans for March delivery traded at USD12.2775 a bushel, retreating 0.38%.
On the Chicago Mercantile Exchange, wheat futures for March delivery traded at USD6.3900 a bushel during early European afternoon trade, shedding 0.34%.
It earlier fell by as much as 0.83% to trade at a session low USD6.3525 a bushel.
Wheat futures have rallied nearly 11% over the past three weeks amid lingering concerns over the South American wheat crop outlook.
The heat of the Southern Hemisphere's summer has been compounded by La Niña, a phenomenon in which tropical waters in the Pacific Ocean turn unusually cold.
The La Nina weather pattern typically brings heavier rainfall in Asia and drier weather in South America.
But prices came under pressure after Australia’s Bureau of Meteorology said earlier that the ongoing La Nina weather event “is at or nearing its peak”.
“While the system remains established over the Pacific Basin, strength indicators have weakened slightly from last week,” the bureau said.
Weather forecasts pointed to rainfall across major wheat-growing areas in the Pampas region in Argentina this week, however concerns remained that the nation’s wheat crops have already suffered irreversible damage.
Meanwhile, markets were looking forward to Thursday’s closely-watched U.S. Department of Agriculture’s World Supply and Demand Report for revised forecasts of South American crop production.
Traders have been focusing on crop prospects in Southern Hemisphere countries in recent weeks, as most Northern Hemisphere grain crops have been harvested by now.
South America is the main competition for U.S. exporters and a smaller crop outlook there would likely mean greater demand for U.S. supplies.
Elsewhere on the Chicago Mercantile Exchange, corn for March delivery dipped 0.15% to trade at USD6.5162 a bushel, while soybeans for March delivery traded at USD12.2775 a bushel, retreating 0.38%.