CHICAGO: Chicago wheat climbed for a second session on Thursday, underpinned by hot and dry weather across India that is likely to diminish that nation’s wheat export potential, while similar conditions erode US winter wheat crops.
Soybean and corn futures traded near even as global supplies remain uncertain and US planting progress stalls amid cool, wet conditions across much of the US Midwest.
The most-active wheat contract on the Chicago Board of Trade (CBOT) was up 38-1/2 cents to $11.15 a bushel by 11:27 EST (1627 GMT), after reaching it’s highest level since April 19.
Soybeans added 1-1/2 cent to $16.42 a bushel while corn eased 1-1/4 to $7.93 a bushel.
India, one of the world’s largest producers of wheat, has enjoyed five consecutive years of record wheat harvests, and recently stepped up export sales to fill the supply gap left by the war in Ukraine.
But India this week cut its wheat output forecast by 6.3 million tonnes to 105 million tonnes as spiking temperatures in mid-March cut crop yields, though top officials at the food ministry have dismissed claims that the country is considering curbing exports. “There’s just a general shortage of wheat around the world,” said Jack Scoville, market analyst at the Price Futures Group.
US wheat has also wilted under hot, dry conditions, with recent rainfall missing parts of the Southern Plains, as harvest approaches.
“We’re going to get some hot temperatures down in Texas, other parts of the Southern Great Plains, which is going to further erode topsoil moisture,” said Terry Reilly, senior analyst at Futures International.
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