CHICAGO: Chicago wheat rose on Friday, with the market poised for its biggest weekly gain in more than three months on short-covering and concerns over lower production in Europe.
Soybeans rose to a three-week high and corn inched up with rising demand for the crops, according to analysts. The most-active wheat contract on the Chicago Board of Trade (CBOT) was up 2-1/2 cents at $5.51-1/4 a bushel as of 11:45 a.m. CDT (1645 GMT), and corn was 4-1/2 cents higher at $4.00-1/2 a bushel.
Soybeans added 5-1/2 cents to $9.98 a bushel, climbing to the highest levels since Aug. 9. The wheat market, which has gained more than 4% this week, is set for its biggest weekly gain since mid-May. Soybeans are up around 3% this week, their biggest weekly rise in four months, and corn saw its first weekly rise in five weeks.
The European Commission on Thursday cut its estimate for usable production of common wheat in the European Union in 2024/25 to 116.1 million metric tons from 120.8 million forecast a month earlier, still a four-year low.
Market players have raised concerns that recent hot, dry weather in the Midwest will dent expectations of bumper US corn and soy crops. However, rainfall and forecasts for milder weather have allayed concerns, traders said.
Exporters sold 132,000 metric tons of US soybeans to China and 100,000 metric tons of soymeal to Colombia, the US Department of Agriculture said in a daily reporting system on Friday. US corn and soybean export sales for the week ended Aug. 22 came in above analyst expectations for 2024/25 sales.
“We’re doing a little bit better on demand. We’re seeing some corn sales and China’s coming in finally buying some soybeans,” said Bill Lapp, president of Advanced Economic Solutions.
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