SINGAPORE: Chicago wheat futures rose on Thursday, supported by the escalating conflict between major grain suppliers Russia and Ukraine, as well as dry weather threatening yields in top consumer China. Corn prices firmed, but soybeans edged lower.
“Ukraine has hit Russia and there are fears of escalation which is supporting wheat prices,” said one trader in Singapore.
The most-active wheat contract on the Chicago Board of Trade (CBOT) rose 0.6% to $5.46-1/4 a bushel, as of 0319 GMT.
Corn added 0.3% to $4.40 a bushel, while soybeans gave up 0.1% to $10.44 a bushel.
Parts of China’s wheat belt in Shaanxi and Henan provinces have been hit hard by hot and dry weather, with near-record temperatures threatening to reduce yields.
Ukraine has stepped up attacks on Russian targets, prompting Russian President Vladimir Putin to tell the US President Donald Trump in a telephone conversation that Moscow would have to respond, escalating worries over grain supplies.
Wheat, corn and soybeans stay firm as war and tariff news monitored
Ukrainian corn exports are set to fall to 1 million metric tons in June from 2 million tons in May, as Ukraine-origin corn is uncompetitive compared to its American equivalent, producers’ union UAC said on Wednesday.
Corn and soybean prices are being capped by favourable weather in the US Midwest, where farmers are wrapping up their planting.
Commodity funds were net buyers of CBOT corn, wheat, soybean and soymeal futures contracts on Wednesday and small net sellers of soyoil futures.
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