Wheat inches higher as US crop gets off to poor start

CANBERRA: Chicago wheat futures inched higher on Tuesday after data showed that the US winter wheat crop was off to its second worst start since 1986 and traders braced for the outcome of the US presidential election.

Chicago wheat climbs on prospects of weak Russian supply

Corn and soybean futures traded flat amid improved US export demand.

Fundamentals

• The most-active wheat contract on the Chicago Board of Trade was up 0.1% at $5.69-1/4 a bushel at 0112 GMT, while CBOT soybeans rose 0.1% to $9.98-1/4 a bushel and corn slipped 0.1% to $4.16-1/4 a bushel.

• All three contracts hit four-year lows in recent months but have regained some ground on supply threats.

• Traders are awaiting the outcome of the US presidential election amid concerns that Donald Trump’s proposed tariffs could disrupt agricultural trade if enacted.

• A weekly US Department of Agriculture (USDA) report showed that 41% of the recently seeded US wheat crop was in good-to-excellent condition as of Sunday, the second lowest percentage since records began in 1986.

• Dry conditions made for difficult planting conditions in the United States and threatened crops in Australia, Argentina and the Black Sea region.

• However, rains eased concerns in the US cropping zones and significant rainfall has benefited wheat crops in the southern parts of Argentina’s agricultural area, the Rosario Grains Exchange (BCR) said.

• GASC, Egypt’s state grains buyer, is believed to have bought 290,000 metric tons of wheat in an international tender, with plentiful offers of Black Sea supply underscoring export competition and weighing on Euronext wheat prices, traders said.

• In the flurry of recent sales, US exporters struck deals to sell 150,000 metric tons of US corn to Mexico and 120,000 tons of corn and 132,000 tons of soybeans to unknown buyers, the USDA reported on Monday.

• Low crop prices boosted exports as massive US harvests increased supplies. Those harvests are now winding down.

• Traders are awaiting a monthly report on Friday from the USDA with crop supply and demand and stockpiles estimates.