SINGAPORE: Chicago wheat bounced back on Wednesday, with the market recovering from a more than two-month low on bargain-buying, although pressure from the US harvest and improved Russian weather are likely to keep a lid on prices.
Corn and soybeans gained ground as the market assessed the impact of floods on crops in the US Midwest.
“The wheat market has sold off heavily because of US harvest pressure,” said a Singapore-based grains trader.
“But we might be close to the bottom.”
The most-active wheat contract on the Chicago Board of Trade (CBOT) added 0.7% to $5.64-1/2 a bushel, as of 0336 GMT.
The contract hit its lowest level since April 19 at $5.56-3/4 a bushel, earlier on Wednesday. Corn rose 0.9% to $4.47 a bushel and soybeans gained 0.6% at $11.18-1/2 a bushel.
The wheat market has dropped this week as the rapidly advancing US harvest shows good yields.
There has been additional pressure as crops stabilized with improved weather in Russia after weeks of droughts and frost.
More flooding hit parts of the US Midwest corn and soybeans areas on Tuesday after a weekend of thunderstorms caused excess water in some areas.
Some traders are assuming that moisture from floods will be ultimately beneficial for crops.
Wheat edges higher from two-month low as traders eye India’s import plans
A heatwave forecast to spread throughout Europe this week is set to take a heavy toll on summer crops in the southeast, but it is good news for farmers on the other side of the region after prolonged rains flooded fields and hampered plants’ growth, analysts said.
Commodity funds were net sellers of CBOT corn, wheat, soybeans, soymeal and soyoil futures contracts on Tuesday, traders said.
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