PARIS/SINGAPORE: Chicago wheat futures held steady on Tuesday near a March high, underpinned by concerns over US crop conditions as traders awaited the outcome of a call between the leaders of the US and Russia over the war in Ukraine.
Soybeans also inched up while corn eased as the markets continued to assess export demand and harvest prospects in rival South American suppliers Brazil and Argentina.
The most active wheat contract on the Chicago Board of Trade (CBOT) was up 0.1% at $5.69 a bushel by 1137 GMT.
The contract rose on Monday to its highest since February 27 after weekend windstorms and tornadoes in the central United States stirred concern about wheat crops already facing dry conditions.
In data published after Monday’s market close, the US Department of Agriculture rated 48% of the winter wheat in top-producing state Kansas as good-to-excellent, down from 52% the previous week.
“There was potential crop-damaging weather in the US over the weekend, which is supporting prices,” said one trader in Singapore.
Grain traders and wider investors are monitoring a call between US President Donald Trump and Russian President Vladimir Putin scheduled for later on Tuesday for any progress towards a ceasefire in Ukraine, as sought by Trump.
An end to the conflict is seen as potentially bearish for grain prices, as it could ease security and sanctions constraints on exports from Ukraine and Russia.
But advancing peace negotiations could boost the rouble and further erode the competitiveness of Russian wheat.
“People are wondering what Putin and Trump will say,” a European trader said. “The rouble will need to be watched.”
The rouble rallied 2.5% on Tuesday ahead of the talks. Tightening supplies and government export restrictions have slowed shipments from Russia in recent weeks. Russia’s March wheat exports are estimated to fall, consultancy Sovecon said on Monday.
“Russian exports are slowing and it will mean higher demand for US wheat,” the Singapore trader said. The USDA on Monday reported higher-than-expected weekly export inspections for wheat, while corn and soybean volumes were within a range of trade estimates.
CBOT soybeans rose 0.2% to $10.17-1/4 a bushel and CBOT corn fell 0.8% to $4.57-1/2 a bushel.
The soybean market has been curbed by the smallest volume of US soybean processing in five months in February, as well as ongoing harvesting of an expected record crop in Brazil.
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