Wheat prices steady as market seeks footing after volatile week

PARIS/SINGAPORE: Chicago wheat futures edged higher on Thursday as the market steadied after a turbulent week that has seen prices both hit a one-year low and mark their biggest daily gain in months amid investment fund positioning.

Wheat remained capped by estimates of abundant world supplies and doubts over whether US exports can recover from a slow start to the season even at attractively low prices.

Weekly US export figures on Thursday showed wheat sales below the range of trade estimates.

Corn and soybean futures were little changed, with traders assessing area forecasts and weather conditions in the US Midwest before the spring planting season.

The most-active wheat contract on the Chicago Board of Trade was up 0.6 percent at $4.50 a bushel shortly before the end of the overnight trading session.

Wheat touched a 13-month low on Monday, then rebounded nearly 6 percent the following day in its biggest daily gain in seven months, before easing back again on Wednesday.

Investment funds are holding large short positions in wheat, making the market prone to abrupt movements.

"Their (funds') net short position remains very important, which would inevitably lead to important purchases, or 'short covering', at the slightest climatic incident," consultancy Agritel said.

Favourable prospects for this year's harvests in some major production zones like the European Union and Russia have added to supply pressure, although traders were monitoring damp, cold conditions that could strain part of the US wheat belt.

Strategie Grains analysts said in a report that potential upside for wheat as low prices generate extra export and feed demand would be curbed by the prospect of ample global supplies next season.

Hopes of an upturn in US exports have been tempered by reports from traders that Black Sea wheat exporters are boosting sales to Asia with last year's crop.

CBOT soybeans were down 0.2 percent at $8.99 a bushel, while corn ticked up 0.2 percent to $3.67-1/4.

Weekly US soybean exports were at the top end of expectations, after large sales to China reported in recent days, while corn exports fell short of expectations.

Traders were waiting to see if wet, chilly weather in the Midwest would hamper spring planting of corn and soybeans.

US farmers are expected to plant 91.475 million acres of corn in 2019 and 84.263 million acres of soybeans, according to an annual survey conducted by commodity brokerage and analytical firm Allendale Inc.