SINGAPORE: Chicago wheat futures edged higher on Thursday, recouping some deep losses from the previous session as tightening supplies from the Black Sea region underpinned the market. Corn fell, while soybeans inched up.

“There are above-average yields expected for US spring wheat, but global wheat supplies are tight,” said a trader.

“Any deterioration in the Black Sea situation will be bullish for prices.”

The most-active wheat contract on the Chicago Board of Trade (CBOT) was up 0.7% at $7.25-1/4 a bushel, as of 0338 GMT, after dropping more than 5% in the previous session.

Corn gave up 0.2% to $5.47-1/4 a bushel and soybeans added 0.5% to $14.26-1/2 a bushel. Scouts on the first day of an annual US crop tour on Tuesday projected spring wheat in southern and east-central North Dakota will produce yields that are slightly lower than last year, but bigger than the five-year average.

The soft wheat harvest in France, the European Union’s main grower, will rise 3.3% to 34.82 million metric tons this year, a “disappointing” volume mainly due to dry weather in large parts of the country, consultancy Agritel said on Wednesday.

Agritel estimates French 2023 soft wheat harvest at 34.8m tonnes

Expectations of lower Black Sea supplies are supporting Chicago wheat prices.

NATO said on Wednesday it was stepping up surveillance of the Black Sea region as it condemned Russia’s exit from a deal assuring the safe passage of ships carrying Ukrainian grain.

The announcement came after a meeting of the NATO-Ukraine Council, a body established earlier this month to coordinate cooperation between the Western military alliance and Kyiv.

Commodity funds were net sellers of CBOT corn, wheat and soyoil futures contracts on Wednesday, and net buyers of soybeans and soymeal futures, traders said.