SINGAPORE: Chicago wheat futures climbed on Thursday, with prices trading close to their highest levels in 10 months hit in the previous session, as expectations of lower production in top exporter Russia continued to buoy the market.
Chicago wheat futures hit 10-month high
Corn futures rose, tracking the strong performance in wheat prices, while soybeans were trading largely flat.
Fundamentals
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The most-active wheat contract on the Chicago Board of Trade (CBOT) was up 0.5% at $6.96-1/4 a bushel, as of 0007 GMT, having climbed to its highest since late July at $7.16-3/4 a bushel on Wednesday.
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Corn rose 0.2% to $4.62-1/4 a bushel, while soybeans were flat at $12.46-1/4 a bushel.
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Russia’s IKAR agricultural consultancy has cut forecasts for Russia’s wheat harvest and exports after unusually hot spring weather combined with bitter frosts in the heart of Russia’s bread basket.
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IKAR cut its Russian wheat crop forecast to 83.5 million metric tons from 86 million tons and reduced the projection for the country’s exports to 45 million tons from 47 million tons.
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Traders are keeping a close watch on Russia, with some rain relief from dryness expected in the next 11 to 15 days, according to an analyst note.
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In Ukraine, crops have also faced dryness and frosts. A state weather forecaster said frosts had not significantly damaged crops but traders are wary after consultants APK-Inform on Monday warned of yield losses.
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Drought in two key Brazilian corn-growing states is reducing the potential size of the country’s second corn crop, according to Agroconsult, an agribusiness consultancy that this week is kicking off a countrywide field tour.
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Chicago wheat futures surged to their biggest premium over corn since 2022 this week, stoking demand for cheaper alternatives that could help whittle down large global corn supplies.
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For corn and soybeans, faster-than-expected planting progress in the US is keeping a lid on prices.
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Commodity funds were net buyers of CBOT corn and soybean, soymeal and soyoil futures on Wednesday and net sellers of wheat futures, traders said.
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