JAKARTA: Chicago wheat, corn and soybean futures edged up in early trade on Thursday, steadying after losses in the previous session caused by favourable US crop conditions, but prevailing caution in the market capped further gains.
The most-active wheat contract on the Chicago Board of Trade (CBOT) was up 0.45% at $5.64 a bushel by 0231 GMT, after falling 1.83% on Wednesday, its lowest since April 19.
CBOT corn rose 0.55% to $4.09-1/2 a bushel, after hitting a two-week low in the previous session while soybeans was up 0.26% to $10.69-3/4 a bushel, after falling to its lowest since November 2020.
“Chicago wheat came under further pressure over the past two days, this is a result of improving crop conditions in the US… Short positions have also been increased in recent weeks, causing some downward pressure as well,” said Andrew Whitelaw, analyst at Australian agricultural consultancy Episode 3.
The increase was marginal and wheat is likely to trade in a narrow range over the coming days, he added.
Traders expect the US Department of Agriculture will increase its ending stocks and production estimates for US corn in a monthly supply/demand report on Friday.
Jordan issues tender to buy 120,000 T of wheat, traders say
China has booked its first purchases of US soybeans for the 2024/25 marketing year, buying 132,000 metric tons of the oilseed, the US Department of Agriculture confirmed in a sales announcement on Wednesday.
Brazilian grain exporters association Anec estimated Brazil soy export in July at 10.29 million tons, while corn exports are likely to reach 4.09 million tons, both higher than previous forecast.
Egypt has lowered its wheat self-sufficiency target for the current fiscal year to 51% from previous target of 65%, even as it plans to increase its farmed area, a cabinet report showed on Wednesday, in line with plans to diversify agricultural exports.
Brazil wheat harvest seen at 8.22 million tons in 2024/2025 cycle, StoneX said, up 6% from previous forecast.
European Union farming association Copa-Cogeca on Wednesday forecast that EU production of common wheat, or soft wheat, will fall by more than 6% this year as declines in countries like France outweigh an expected recovery in Spain.
Euronext wheat futures on Wednesday touched a two-week low, as improving harvest prospects and cheaper prices in top exporter Russia continued to weigh on sentiment.
A group of South Korean flour mills bought an estimated 90,000 tons of milling wheat to be sourced from the United States and Canada in an international tender on Wednesday, European traders said.
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