SINGAPORE/PARIS: Chicago wheat futures rose for the first time in three sessions on Wednesday, with bargain-hunting supporting prices, although much needed rain in the U.S. crop belt kept a lid on prices.
Corn and soybeans slid, with both markets facing pressure from rapidly advancing U.S. planting and the Washington-Beijing trade war.
The most-active wheat contract on the Chicago Board of Trade (CBOT) was up 0.2% at $5.26-3/4 a bushel as of 1042 GMT, after dropping around 2.5% on Tuesday. Soybeans fell 0.9% to $10.43-3/4 a bushel, while corn declined 0.1% to $4.69-3/4 a bushel.
“The significant improvement in U.S. winter wheat conditions (…) is weighing heavily on this market. This pressure is further reinforced by the expectation of beneficial rainfall in the southern Great Plains,” Argus’ consultancy Agritel said in a note.
U.S. farmers had planted 24% of the corn crop as of Sunday, the U.S. 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%.
Corn and soy ease on crop progress, wheat steadies after slide
The agency said the soybean crop was 18% planted, ahead of the five-year average of 12% and analysts’ estimate of 17%.
The China-U.S. trade war is continuing to cloud U.S. 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.
However, this may prove difficult as China’s soybean imports were at a record high last year, raising questions about the implementation of feed reformulation efforts.
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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