BEIJING: Chicago wheat futures fell on Monday to their lowest level in two months, pressured by abundant global supplies, weak demand for US exports and the advancing harvest in the US Plains.
The most-active wheat contract on the Chicago Board of Trade (CBOT) was down 0.47percent at USD5.77-1/4 a bushel, as of 0157 GMT, extending losses to a seventh consecutive session.
Large Northern Hemisphere crops continued to weigh on the market despite a drought-diminished US winter crop. In Ukraine, APK-Inform agriculture consultancy said on Sunday it revised up the country’s wheat harvest to 21.7 million tons from 19.9 million tons.
Last week, Russia’s IKAR consultancy also hiked its forecast for the country’s 2026 wheat crop to 91.5 million metric tons from 90 million tons. Improved moisture in drought-hit US wheat-growing areas added further pressure, while the winter wheat harvest gathered pace, boosting already strong grain supplies.
Soybeans slipped 0.09percent to USD11.20-1/2 a bushel, while corn lost 0.18percent to USD4.16-3/4 a bushel, weighed by favourable weather conditions and the absence of renewed Chinese demand for US crops. Market participants continue to watch for signs of fresh Chinese demand after Beijing and Washington agreed to expand agricultural trade in mid-May.
The lack of significant purchases since then has weighed on soybean prices. Forecasts for above-normal rainfall across much of the US Midwest over the next two weeks are expected to support germination and crop development for recently planted corn and soybeans, forecasters said late last week. Higher crude oil prices offered some support to corn and soybean markets, as both crops are used in the production of biofuels.
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