SINGAPORE: Chicago wheat futures lost more ground on Thursday, with prices sliding to their lowest in almost two weeks, on pressure from beneficial rains in Argentina and ample supplies in Russia.
Corn also extended its losses, while soybeans were largely flat.
The most-active wheat contract on the Chicago Board of Trade (CBOT) was down 0.7% at $5.64-1/4 a bushel, as of 0531 GMT, having dropped to $5.63-1/4 a bushel, the lowest since Oct. 12.
Soybeans added quarter of a cent to $13.09 a bushel and corn lost 0.2% to $4.79-1/4 a bushel.
“There have been beneficial rains in Argentina, which are beneficial for the wheat crop,” said a grains trader in Sydney.
“In Australia, some late rains have improved the crop conditions on the east coast.” Russia’s grain harvest in 2023 is seen at 140 million tons, Russian Agriculture Minister Dmitry Patrushev said during a meeting with Russian President Vladimir Putin on Thursday.
Wheat unmoved as rains in Australia, Argentina limit upside potential
The wheat crop is seen at 93 million tons, Patrushev said. Argentina’s main farmland welcomed an average of 45.5 millimeters (1.8 inches) of rainfall last weekend, according to the Rosario stock exchange, which has forecast additional rainfall between Monday and Tuesday of next week.
Rains in Argentina, which also weighed on corn prices, are a relief for the South American agricultural powerhouse, which endured a historic drought last season.
The Rosario stock exchange said rains in Argentina will also benefit wheat, while widespread rain has improved conditions for the development of winter crops in Ukraine.
Rains across key Australian wheat-growing areas are likely to increase yields, adding several million tons to a crop that had been hit by dry weather and boosting the global supply outlook, analysts said.
Traders will review weekly US grain and soybean export sales data expected to be released on Thursday.
Commodity funds were net sellers of CBOT corn, soybeans, wheat and soymeal futures contracts on Wednesday and net buyers of soyoil, traders said.