CANBERRA: Chicago wheat futures rose on Tuesday and were trading near a three-week high, supported by concerns that exports from top supplier Russia could be disrupted by a dispute between shippers and regulators over grain quality.
Soybean and corn futures fell ahead of a US Department of Agriculture (USDA) planting intentions report due on Thursday that could move the markets.
Fundamentals
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The most-active wheat contract on the Chicago Board of Trade (CBOT) was up 0.3% at $5.56-1/2 a bushel by 0004 GMT after reaching $5.67 on Monday, its highest since March 4. * CBOT soybeans were down 0.3% at $12.06-1/4 a bushel and corn fell 0.2% to $4.37 a bushel.
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All three contracts are near their lowest levels since 2020 amid plentiful supply and speculators are betting on further price falls. Wheat fell as low as $5.23-1/2 this month.
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Russian authorities are preventing the processing and shipment of about 400,000 metric tons of grains, the owner of one of Russia’s largest grain exporters, TD RIF, said.
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Authorities say their action follows complaints from importing countries about the non-compliance of Russian grain quality with quarantine requirements.
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Traders were already concerned about the impact on Ukrainian wheat exports of Russian attacks on Ukraine’s port and energy infrastructure.
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Meanwhile, winter grain crops are in mediocre condition in large parts of the European Union, EU crop monitoring service MARS said.
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However, huge supply from Russia - the biggest exporter - has driven down wheat prices and analysts predict that shipments could set a new March record of 5 million tons this month.
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Elsewhere, consultants AgRural said Brazil’s 2023/24 soybean harvest had reached 69% of the planted area, as of last Thursday, slightly below the 70% seen at the same time a year earlier.
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Traders are waiting for a USDA planting intentions report due on Thursday, with analysts predicting an increase in soybean area and declines in corn and wheat area.
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