SINGAPORE Chicago wheat dropped for a second session on Tuesday, falling more than 1% as concerns over world supplies eased after a US government report showed that the winter crop remained healthy despite dry weather conditions.

Soybeans lost more ground, while corn fell after closing marginally higher on Monday.

"For US wheat, it's mainly hard red winter wheat-growing region in Kansas which has been a bit dry in recent weeks, but it's still too early to draw any conclusions," said a Singapore-based trader. "If it doesn't rain for another month, then we might have a problem."

The most-active wheat contract on the Chicago Board of Trade (CBOT) was down 1.2% at US$5.59 a bushel, as of 0550 GMT. Soybeans gave up 0.1% to US$11.80-1/2 a bushel and corn slid 0.2% to US$4.34-1/2 a bushel.

The amount of US winter wheat rated "good or excellent" by the US Department of Agriculture (USDA) held steady from last week, despite concerns over drier weather and wind, data showed on Monday (April 8).

The agency, in a report issued after trading ended on Monday, said 56% of winter wheat was in "good-to-excellent" condition, compared with 27% a year ago and the best for this time of year since 2020.

Wheat output in India, however, is likely to be lower than the official forecast. India is expected to produce 105 million metric tonnes of wheat this year, a flour millers' body said on Monday, 6.25% below the government estimate.

For corn, the USDA showed the US crop as 3% planted, compared with analysts' average of 4%.

The USDA is slated to update global supply-and-demand data in a monthly report on Thursday (April 11).

Brazil's soybean harvest for the 2023/2024 cycle had reached 78% of the planted area as of last Thursday (April 4), agribusiness consultancy AgRural said on Monday, up four percentage points from the previous week. The figure was below the 82% seen at the same time a year earlier.

Australian farmers are likely to plant more wheat and barley this year due to Chinese demand, and wet weather on the country's east coast, while canola sowing should fall amid lower profit margins and dry conditions in the west, analysts said.

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

  - Reuters