CANBERRA: Chicago wheat futures climbed on Monday, supported by a weaker US dollar and expectations of lower supply from top exporter Russia.
Corn and soybean futures also gained amid solid US export sales. The most-active wheat contract on the Chicago Board of Trade was up 0.8% at $5.72-3/4 a bushel at 0507 GMT. CBOT soybeans rose 0.9% to $10.03 a bushel and corn climbed 0.7% to $4.17-1/2 a bushel.
All three contracts had fallen to four-year lows in recent months but have regained some ground on supply threats. The dollar, which strengthened sharply in October, has weakened in recent days, making dollar-priced US crops more attractive to buyers with other currencies.
Russian wheat exports are set to decline in November from record highs seen last month amid new export restrictions and reduced demand, analysts said.
Russia has also, along with other major wheat exporters such as Argentina, Australia and - until recently - the United States, been hit by dry conditions in major growing areas. “Our forecast for prices to continue to move higher gradually,” said Dennis Voznesenski, an analyst at Commonwealth Bank.
“There’s concern in the market over Russian crop prospects. A lot of crops there are behind on their development,” he said. In other crops, strong export demand is underpinning soybean and corn futures, with low prices attracting buyers as US farmers wrap up one of the largest harvests in history.
Speculators, who as recently as July held a massive net short position in CBOT corn, have reversed course and are now their least bearish since the beginning of August 2023.
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