Wheat climbs 1% on global supply worries, soybeans rebound
- Soybeans rose for the first time in three sessions and corn also gained ground
SINGAPORE: Chicago wheat futures gained almost 1% on Monday, rebounding from last session's losses on concerns over production downgrades in key exporting countries.
Soybeans rose for the first time in three sessions and corn also gained ground.
"A lack of farmer selling is keeping wheat prices high," said Ole Houe, director of advisory services at brokerage IKON Commodities in Sydney. "Even though, we think lower world output has been factored into the market."
The most-active wheat contract on the Chicago Board of Trade (CBOT) added 0.9% to $7.39 a bushel by 0219 GMT, having closed down by a similar amount on Friday.
Soybeans were up 0.5% at $13.30 a bushel and corn rose 0.5% to $5.56-1/2 a bushel.
Russian agriculture consultancy Sovecon said it had cut its forecast for Russia's 2021/22 wheat exports by 3.2 million tonnes to 33.9 million tonnes due to a lower crop, slow pace of exports and tough competition with other suppliers.
Such an amount would be lowest wheat exports from Russia, the world's largest exporter of the grain, since the 2016/17 marketing season when it supplied 27.8 million tonnes, Sovecon said in a note.
The United States and other exporters in the Northern Hemisphere are expecting lower output.
The US Department of Agriculture on Friday confirmed 129,000 tonnes of US soybeans sold to China and 150,000 tonnes of corn sold to Colombia.
The US Environmental Protection Agency has recommended retroactively lowering biofuel blending mandates for 2020, two sources familiar with the matter said, after the agency on Thursday sent a proposal on the mandates to the White House for review.
Large speculators cut their net long position in CBOT corn futures in the week to Aug. 24, regulatory data released on Friday showed.
The Commodity Futures Trading Commission's weekly commitments of traders report also showed that noncommercial traders, a category that includes hedge funds, increased their net short position in CBOT wheat and cut their net long position in soybeans.
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