Chicago wheat futures declined on Thursday. Their decline from an eight-month peak last week has now reached around 7%. It became apparent that Northern Hemisphere Winter crops had survived a period with cold weather without major damage.

All three contracts were under pressure due to renewed concerns that tariffs would ensnare the agricultural trade, dampening global economic growth and reducing demand for grains, oilseeds and grains.

As of 0608 GMT the most active wheat contract traded on the Chicago Board of Trade was down 0.5% to $5.76-3/4 per bushel. This is a decline from its peak of $6.21-1/4 reached on February 19. It had been at this level since last June.

The recent rise in wheat prices was due to the rising price of corn and to expectations that Black Sea supplies would be tightened. However, with corn's rally losing steam and grain being abundant, this upward trend is now reversing.

Analysts say that snow cover has shielded wheat crops in Russia and the United States from damage caused by frosty conditions during this month.

In a recent note, Commonwealth Bank analyst Dennis Voznesenski stated that the potential for peace between Russia & Ukraine would also weigh on wheat because it would reduce any risk of Black Sea Export disruptions.

Traders said that commodity funds, who had a net-short position in CBOT Wheat, have sold in the last few days.

Rod Baker, an Australian Crop Forecasters analyst, says that prices are likely to fluctuate in the months ahead as crop estimates for the northern hemisphere become more accurate.

He said that demand is weak but there's "still a bit bullish outlook". The Black Sea exports have dropped, the stocks are tight and it will not take much to boost prices.

Other crops saw CBOT corn rise 0.1% to $4.93-3/4 per bushel, and soybeans climbed 0.3% to $10.44-3/4 per bushel.

At its annual Outlook Forum, the U.S. Department of Agriculture is expected to project that acreage will shift from soybeans to corn in order for farmers find profit.

(source: Reuters)