SINGAPORE: Chicago wheat futures on Friday were on track for a second monthly gain after a severe drought curbed production of top quality spring crop in the United States and as Russia, the world’s largest wheat exporter, reduced its output estimates.
Soybeans and corn are set to finish July in negative territory on slowing demand in top importer China.
“Adverse weather has damaged the US spring crop,” said one Singapore-based grains trader at an international trading company. “The output is not just below average but record low.”
The most-active wheat contract on the Chicago Board of Trade (CBOT) was down 0.5percent at $7.02 a bushel, as of 0254 GMT. Wheat gained 3.3percent so far this month.
Soybeans lost 1.6percent in July after closing almost 9percent lower last month, and corn is down nearly 6percent this month, its third monthly decline.
Scouts on the second day of the Wheat Quality Council’s annual tour found that spring wheat yield prospects in northwest North Dakota were well below average.
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