Wheat slips further as Northern Hemisphere harvests loom

CANBERRA: Chicago wheat edged lower on Wednesday, a fifth consecutive day of losses, as traders ignored a worsening of US crop ratings and looked ahead to Northern Hemisphere harvests that will pour new supply into the market in coming months.

Corn and soybeans were little changed, with both contracts under pressure as rainfall in the United States - while too late to save winter wheat - improves the outlook for this year’s summer crops.

The most-traded wheat contract on the Chicago Board of Trade was down 0.2% at $6.34-1/2 a bushel at 0310 GMT.

CBOT wheat rose from just over $5 a bushel at the start of 2026 to a two-year high of $6.88-1/4 on May 14 as drought damaged crops in the United States.

But prices have since slipped by around 8% and the market shrugged off US government data on Tuesday showing that 26% of the US winter wheat crop was in good-to-excellent condition, below analyst expectations and the lowest for this time of the year on record.

Also read: Chicago grain, oilseed futures fall on uncertainty, favorable weather

“We need more fuel for the rally,” said Rabobank analyst Vitor Pistoia. “The problems with US winter wheat have been priced in. That’s no longer a bullish element. We need to see something else.”

Prices will however remain supported if the Strait of Hormuz remains closed, squeezing fuel and fertiliser supply, Pistoia said.

Expensive oil spurs interest in biofuel, raising feedstock demand, while the high cost of fertiliser tempts farmers to use less, pushing down crop yields.

In other crops, CBOT corn fell 0.1% to $4.57-1/4 a bushel and soybeans were up 0.1% at $11.86-3/4 a bushel.

Indian traders cancelled 25,000 metric tons of soymeal export contracts for the first time since 2021 and booked 80,000 tons of imports from African countries after soaring domestic prices reversed trade flows, sources said.