Wheat drops for a second day in Chicago

TOKYO, Mar 8 (Bloomberg): Wheat fell for a second day in Chicago after a government report showed steady or improved winter-crop conditions in major U.S. growing areas. Corn slid for a third day, while rice and soybeans also declined. Winter-wheat conditions in Kansas and Texas were unchanged from last week and crops in Oklahoma improved, the U.S. Department of Agriculture said Monday. Wheat Monday plunged 3.8 per cent, the most in almost two weeks, and is down 6 per cent since the end of January. "The brighter outlook for U.S. winter wheat is a factor here, as the dry conditions in the major growing areas are set to improve due to rainfall," Carsten Fritsch, an analyst at Commerzbank AG in Frankfurt, said in a report Tuesday. Wheat for May delivery fell 10.5 cents, or 1.3 per cent, to $7.9025 a bushel at 10:33 a.m. London time on the Chicago Board of Trade. Milling wheat for March delivery traded on NYSE Liffe in Paris dropped for a seventh day, losing 2.6 per cent to 242 euros ($336.98) a metric ton. About 25 per cent of the crop in Kansas, the biggest U.S. winter-wheat grower, was in good or excellent condition as of March 6, unchanged from the end of February, the USDA said. About 18 per cent of Texas crops were good to excellent, unchanged from last week, and 22 per cent of the Oklahoma crop was good to excellent, up from 19 per cent, the report showed. Winter wheat is planted in the U.S. Midwest and central and southern Plains from September to early November, and goes dormant until about March. It is harvested from June to August. Iraq will buy 400,000 tons of wheat from the U.S. and Australia, Muthanna Jabbar, director-general of the Iraqi Grains Board, said Monday. Rice for May delivery declined 29 cents, or 2.1 per cent, to $13.655 per 100 pounds in Chicago. The grain dropped 1.7 per cent Monday. Corn for May delivery fell 4.5 cents, or 0.6 per cent, to $7.13 a bushel after losing 1.4 per cent Monday. Soybeans for May delivery shed 12.5 cents, or 0.9 per cent, to $13.825 a bushel. The oilseed declined 1.3 per cent Monday.