SINGAPORE: Chicago wheat rose for the first time in four sessions on Wednesday, underpinned by strong global demand, although ample world supplies are likely to limit the upside potential in prices.
Soybeans and corn futures gained more ground on bargain-buying.
“There is some demand for wheat, buyers are taking cargoes at these prices,” said one Singapore-based trader. “Corn and soybeans are just recovering from lows. Hot weather in Ukraine is an issue for corn.”
The most-active wheat contract on the Chicago Board of Trade (CBOT) was up 0.6% at $5.33-3/4 a bushel, as of 0326 GMT. Soybeans added 0.1% to $10.44-3/4 a bushel and corn gained 0.5% at $4.10-3/4 a bushel.
Strong global demand is supporting wheat prices. Egypt made hefty purchases of Black Sea wheat amid lower Russian prices.
Asian wheat buyers have stepped up purchases in recent weeks, taking cargoes from the Black Sea region as they returned to the market after a long gap, drawn by a fall in global prices to their lowest in four months.
The corn market was underpinned by drought hitting production prospects in Ukraine.
Ukraine’s 2024 corn yield could fall by 30-35% because of extreme heat and drought, the county’s major agricultural producers group, the Ukrainian Agrarian Council, said on Tuesday.
Commodity funds were net buyers of CBOT corn, soybeans, soymeal and soyoil futures contracts on Tuesday, and net even on wheat futures contracts, traders said.
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