PARIS/SINGAPORE: Chicago wheat futures climbed on Wednesday, recovering from their lowest since September 2021, although gains were curbed by expectations of a renewal of the Black Sea grain export deal and tough Russian competition on world markets.
Corn and soybeans rose for the first time in six sessions.
The most-active wheat contract on the Chicago Board of Trade (CBOT) was up 0.35% at $7.08 a bushel as of 0210 GMT, after dropping to its lowest since September 2021 at $7.02-1/2 a bushel on Tuesday.
Turkiye gets offers in tender to buy 790,000 tonnes wheat
Corn rose 0.1% to $6.30-3/4 a bushel and soybeans gained 0.7% at $14.89-1/4 a bushel.
Optimism over the Russia-Ukraine export deal and cheap Russian exports kept the pressure on wheat futures.
In Europe, benchmark May on Paris-based milling wheat futures hit a one-year low of 273.75 euros ($291.82) a tonne.
“The fact that Russia continues to slash prices on the world market and the not-so-positive macro elements in the past few days are worrying the markets,” a French broker said.
Turkey’s state grain board, TMO, has provisionally purchased an estimated 790,000 tonnes of wheat in an international tender. Traders said Russian wheat was among the purchases along with some Ukrainian and a range of other origins, especially from other Black Sea countries.
Dry weather in many parts of the world is expected to support wheat prices going forward.
Australia’s wheat crop is likely to face risks from dry weather due to the El Nino weather pattern in the second half of 2023 after three years of record production, a consultancy said, adding to concerns about crops in the northern part of the world.
India is likely to experience heat waves between March and May, especially in the key wheat-producing central and northern states, the weather office said on Tuesday.
In the soybean market, recently harvested supplies from top producer Brazil weighed on prices.
Commodity funds were net sellers of CBOT soybean, corn, wheat, soymeal and soyoil futures contracts on Tuesday, traders said.
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