Wheat falls to 5-year low

CANBERRA: Chicago wheat futures fell to a five-year low on Tuesday, as increasing exports from top shipper Russia raised concerns about abundant global supply.

Soybean and corn futures also slipped under pressure from the ongoing US harvest, while soy traders remained unsure whether a potential Washington-Beijing trade deal would revive Chinese purchases of US beans.

The most-active wheat contract on the Chicago Board of Trade (CBOT) fell 0.6 percent to USD4.93-3/4 a bushel at 0553 GMT after touching its lowest since August 2020.

Soybeans lost 0.4 percent to USD10.04 a bushel and corn eased 0.1 percent to USD4.10-1/2 a bushel. Prices of all three crops have fallen in recent years due to plentiful global supply, and with Russian exports increasing, prices fell last week.

Consultants Sovecon raised their 2025 Russian wheat production estimate from 87.2 million tons to 87.8 million tons last week, reflecting record yields in Siberia.

Traders also expect large harvests in Argentina and Australia to hit the market over the coming months. Crop conditions in most wheat major producers have been benign this year, though consistent rainfall in parts of China is disrupting its harvest. CBOT wheat is now so cheap that it will find buyers, said Ole Houe, director of advisory services at IKON Commodities in Sydney.

“Prices in physical markets are holding up. US wheat is now the cheapest in the world and it will likely find support in the near future,” he said, adding that Chicago corn and soybeans may continue to fall due to US harvest pressure.

In soybeans, attention is locked on China, the biggest soybean importer, which has halted purchases from the United States and is buying from South America instead.

US President Donald Trump appeared over the weekend to dash hopes of a trade deal but he and other US officials have softened their rhetoric.

Soybean planting for the 2025-26 season in Brazil, the biggest soy producer, is continuing at a rapid pace and could result in a record harvest.