SINGAPORE: Chicago wheat futures rose for the first time in three sessions on Wednesday, with bargain-hunting supporting prices, although much needed rain in the US crop belt kept a lid on prices.
Corn and soybeans slid, with both markets facing pressure from rapidly advancing US planting and the Washington-Beijing trade war.
“Crops are being planted smoothly in the US Midwest and rains are helping winter wheat in US Plains,” said a grains trader in Singapore.
“These are bearish signals for the market when you are not sure about the demand side. Trade war is reducing US grain and oilseed exports to China.”
The most-active wheat contract on the Chicago Board of Trade (CBOT) was up 0.1% at $5.26 a bushel as of 0311 GMT, after dropping around 2.5% on Tuesday.
Soybeans fell 0.6% to $10.47 a bushel, while corn declined 0.1% to $4.70 a bushel.
Timely rainfall in parts of the US Plains has improved winter crop prospects, weighing on prices.
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The market is now focused on the pace of US planting. US farmers had planted 24% of the corn crop as of Sunday, the US Department of Agriculture (USDA) said in a report released on Monday, one percentage point behind analysts’ estimate but ahead of the five-year average of 22%.
The agency said soybean crop was 18% planted, ahead of the five-year average of 12% and analysts’ estimate of 17%.
The China-US trade war is continuing to cloud US soybean export prospects.
China aims to cut grain use in livestock feed to around 60% and slash soymeal content to about 10%, the agriculture ministry said.
Corn and soybean markets were also pressured by favourable crop weather in South America.
Recent showers have eased drought conditions that threatened Brazil’s safrinha corn crop, while a dry spell in Argentina is set to help corn and soybean harvesting after heavy rains.
Commodity funds were net sellers of CBOT corn, soybean, wheat and soyoil futures contracts on Tuesday, but were net buyers of soymeal futures, traders said.
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