Grain future session losses were extended as traders proceed with caution while waiting for the market for the latest global supply and demand data from the U.S. Department of Agriculture.
as stated by Kim Rugel at Benson Quinn Commodities "There is little fresh news for trade today leaving yesterday's big Brazilian production estimates and outlook for USDA to raise world corn and bean carryout tomorrow offering resistance,"
The Agricultural markets are being pressed down by the rising dollar, making the U.S. exports a lot less competitive.
All of this adds up to a difficult market for U.S. supplies, particularly as the Brazilian exports perform weaker in the previous trading session, breaking the new five-week lows.
The outlook for the U.S. wheat is mixed, with concerns of the dry season looming with little threats in the U.S. plains. The forecast for the U.S. Midwest and the delta region weather is said to be rainy, which will be good for the winter futures of wheat there.
Darrell Holaday from Country Futures noted that “hints of better moisture in the hard red winter wheat areas out in the 10-14 day period," but he warned that he was "not confident at this time".
Which would push Chicago’s May wheat futures settled down 2.0%, and would be sold at $4.47 ½ a bushel.
In connection with that, sugar futures found some traction, managing to finish the session unchanged after falling to their weakest level in two-and-a-half-months.