Wheat regains ground as Egypt tender keeps focus on Russian exports

PARIS/SYDNEY: Chicago wheat futures rose on Tuesday, recouping some ground lost the previous session as Russian prices climbed at an Egyptian wheat tender after Moscow took steps to curb exports.

Soybeans and corn edged lower as weather forecasts pointing to heavier rain next week in central Brazil easing concerns about persisting dryness in crop belts.

The most active wheat futures on the Chicago Board Of Trade were up 0.8pc at $6.01-1/2 a bushel by 1232 GMT.

Grain prices have been volatile since Russia first proposed a wheat export tax and grain export quota to cool domestic food prices. On Tuesday, the prime minister signed orders to implement the new measures.

Some traders said the new rules would reduce the availability of Russian grain, driving buyers to other suppliers, but they said Russian exports could initially jump before the tax is implemented from Feb. 15 to June 30.

"Some are thinking that means there will be an acceleration of Russian exports in the period between now and mid-February," said Tobin Gorey, director of agricultural strategy, Commonwealth Bank of Australia.

The Egyptian wheat tender on Tuesday showed fewer offers of Russian wheat than in previous tenders and at much higher prices.

CBOT corn futures were down 0.8pc at $4.20-1/2 a bushel, while soybean futures were down 0.5pc at $11.64-1/4 a bushel.

The additional rainfall forecast in Brazil could further ease crop worries after regular showers since last month.

But tightening supplies due to strong Chinese demand could keep the soybean market underpinned.

Oilseeds crushers' association Abiove raised its forecast for Brazilian soybean imports in 2021, with brisk exports leaving limited supplies for local crushing.