BEIJING: Chicago wheat futures extended gains on Wednesday, lifted by signs of improving demand and bargain-buying after three straight sessions of losses pushed the contract to its lowest since February.
Corn and soybeans edged lower.
The most-active wheat contract on the Chicago Board of Trade (CBOT) rose 0.53% to $9.41 a bushel.
Corn fell 0.38% to $6.56-3/4 a bushel and soybeans edged down 0.5% to $14.55-1/4 a bushel.
Jordan’s state grains buyer purchased about 60,000 tonnes of hard milling wheat to be sourced from optional origins in a tender that closed on Tuesday.
Indicating signs of demand, Bangladesh and Pakistan also launched tenders to purchase wheat. The reports of more demand supported Chicago wheat prices.
More purchases and tenders were made after prices got lower, said a China based trader, explaining the rise in wheat prices.
The talks on clearing grains export passage from the Black Sea Region, blocked after the Russia-Ukraine war, continued to weigh on the global grains market.
EU wheat rebounds from three-month lows on broader rally
Expanded harvest in the northern hemisphere also imposed downward pressure on wheat prices.
The U.S. Department of Agriculture (USDA) cut its rating of the country’s corn crop in good-to-excellent shape to 67% in its weekly crop progress report, down 3 percentage points from a week ago and below the average of estimates in a Reuters poll.
Russia, the world’s largest wheat exporter, will change its formula for calculating grain and sunflower oil export taxes to support shipments amid a strong rouble currency, the economy ministry said on Tuesday.
Brazil corn exports are forecast to reach 1.683 million tonnes in June, versus 1.758 million tonnes forecast a week earlier. Soybean exports from the South American country were seen reaching 10.154 million tonnes in June vs 10.795 million tonnes forecast in previous week, ANEC said Tuesday.
Commodity funds were net buyers of Chicago Board of Trade corn, soybean, wheat, soymeal and soyoil futures contracts on Tuesday, traders said.
Stocks on global indexes fell sharply on Tuesday, with the S&P 500 down 2% after a report showed U.S. consumer confidence dropped in June amid concerns about inflation, while oil prices gained for a third day.
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