Wheat poised for second weekly gain on concerns over dry US conditions

BEIJING: Chicago wheat futures inched higher on Friday and were on track for a second straight weekly gain due to concerns over dryness in the U.S. Plains.

The most-active wheat contract on the Chicago Board of Trade (CBOT) was up 0.08% at $6.20-3/4 a bushel, as of 0131 GMT.

“US wheat remains supported by the ongoing drought concerns, particularly in HRW (hard red winter wheat) areas,” said Sean Hickey, an analyst at Bendigo Bank Agribusiness.

Drought conditions worsened over the past week in central and western Nebraska and in central and western Kansas, according to the latest U.S. Drought Monitor report.

However, rains are expected in the central United States over the next 10 days, which may ease stress on drought-parched wheat crops.

Rising crude oil prices underpinned grain markets in general this week. Oil prices can influence grains as corn and soybeans are feedstocks for biofuels, while disruptions to fertilizer supplies due to the closure of the Strait of Hormuz may affect farming costs and yields.

Soybeans were flat at $11.74-3/4 a bushel, but looked set to notch a weekly rise.

“Soybean markets are focused on export sales data and sowing progress at the moment. Attention will also firmly shift towards US President (Donald) Trump’s meeting with (Chinese President) Xi Jinping as this draws nearer,” said Hickey.

The U.S. Department of Agriculture (USDA) reported weekly net export sales of old-crop U.S. soybeans at 364,633 metric tons, in line with trade estimates. New-crop sales totalled 5,000 tons.

In Argentina, the Buenos Aires Grains Exchange raised its estimate for the country’s 2025/26 soybean harvest by 100,000 tons on Thursday, citing higher-than-expected yields.

Corn edged 0.11% higher to $4.64-1/4 a bushel and was headed for its second straight week of gains, buoyed by strong export demand.

The USDA reported weekly net export sales of old-crop US  corn at 1,316,703 tons, in line with trade estimates, while new-crop sales topped expectations at 440,110 tons.

Commodity funds were net buyers of CBOT corn and wheat, but sellers of soybeans, traders said on Thursday.