CANBERRA: Chicago wheat futures were little changed on Thursday after rising 3.2% in the previous session, as concerns about shipments from top exporter Russia triggered buying by speculators.
Corn futures sat near a 15-month high hit on Wednesday as dry weather in Argentina and slow planting in Brazil highlighted a weak supply outlook.
Soybeans edged lower after reaching a 6-month high last week. The most-active wheat contract on the Chicago Board of Trade was down 0.2% at $5.61-1/2 a bushel at 0242 GMT, after rising as high as $5.65 on Wednesday.
Prices remain near last year’s low of $5.14 a bushel and speculators have been net short, leaving plenty of room for short covering and long accumulation. “Supply is tightening up in the Black Sea. You just need a bit of a supply scare. Speculators are staring to unwind that short position,” said Rod Baker, an analyst at Australian Crop Forecasters in Perth.
Russia’s agriculture minister said the country’s 2024/25 grain exports would be around 20% lower than in 2023/24 due to poor weather and an almost 70% cut in export quotas for the second half of the season was to protect the domestic market. The head of Russia’s state weather agency said a mild winter was helping winter crops to survive, but some analysts have warned that warm conditions will make crops more vulnerable to late frosts.
High corn prices are meanwhile triggering an increase in demand for feed wheat, Baker said. CBOT corn slipped 0.5% to $4.94-3/4 a bushel after rising 2.4% and peaking at $4.98 the previous day. Soybeans fell 0.4% to $10.56 a bushel.
Rain in Argentina has provided only minimal relief for drought-hit corn and soy crops.
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