BEIJING, March 25 (Reuters) - Chicago wheat futures dropped on Tuesday, as improved weather forecasts in crucial growing regions tempered some of the bullish outlook, while traders monitored the ongoing Russia-Ukraine peace negotiations.
Soybeans and corn also edged lower amid concerns that U.S. tariffs could curb demand for American grains and oilseeds.
FUNDAMENTALS
* The most-active wheat contract Wv1 on the Chicago Board of Trade (CBOT) was down 0.55% at $5.45-4/8 a bushel, as of 0048 GMT.
* Soybeans Sv1 dropped 0.27% to $10.04-4/8 a bushel and corn Cv1 slipped 0.22% to $4.64 a bushel.
* Traders are closely monitoring tariff talks between the U.S. and its top agricultural trade partners: Canada, Mexico, and China.
* Brazilian farmers are projected to harvest 165.9 million metric tons in the 2024/25 season, 2.3 million tons lower than earlier estimates, according to consultancy AgRural on Monday.
* Analysts noted that favourable weather in key wheat-growing regions, including the Black Sea, put pressure on futures, with forecasts from Maxar indicating showers in parts of the U.S. wheat belt over the next two weeks.
* U.S.-Russia talks on Ukraine continue, with progress potentially bearish for prices as a ceasefire could secure Black Sea shipments.
* Taiwan is seeking to buy 100,000 metric tons of U.S. milling wheat and 65,000 metric tons of feed corn, according to European traders.
* U.S. President Donald Trump still plans to impose new reciprocal tariffs next week, though the duty size and targeted countries remain uncertain.
* Traders are positioning themselves ahead of the USDA's March 31 reports, which will provide estimates for 2025 planting intentions, with expectations that farmers will plant more corn.
* Commodity funds were net sellers of Chicago Board of Trade wheat, corn, soymeal and soyoil futures contracts on Monday, traders said. They were net even in soybeans. COMFUND/CBT
MARKET NEWS
The dollar hit a three-week high on the yen and was firm across the board following some strong U.S. services data and cautious optimism on the tariff front. MKTS/GLOB
DATA/EVENTS $(GMT.NZ)$
0900 Germany Ifo Business Climate New, Ifo Curr Conditions New, Ifo Expectations New March
1400 US Consumer Confidence March
1400 US New Home Sales-Units February
(Reporting by Ella Cao and Mei Mei Chu; Editing by Sherry Jacob-Phillips)
((Ella.Cao@thomsonreuters.com;))
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