CANBERRA: Chicago wheat futures rose on Tuesday and were trading near a three-week high, supported by concerns that exports from top supplier Russia could be disrupted by a dispute between shippers and regulators over grain quality.
Soybean and corn futures fell ahead of a US Department of Agriculture (USDA) planting intentions report due on Thursday that could move the markets.
Fundamentals
The most-active wheat contract on the Chicago Board of Trade (CBOT) was up 0.3% at $5.56-1/2 a bushel by 0004 GMT after reaching $5.67 on Monday, its highest since March 4. * CBOT soybeans were down 0.3% at $12.06-1/4 a bushel and corn fell 0.2% to $4.37 a bushel.
All three contracts are near their lowest levels since 2020 amid plentiful supply and speculators are betting on further price falls. Wheat fell as low as $5.23-1/2 this month.
Russian authorities are preventing the processing and shipment of about 400,000 metric tons of grains, the owner of one of Russia’s largest grain exporters, TD RIF, said.
Authorities say their action follows complaints from importing countries about the non-compliance of Russian grain quality with quarantine requirements.
Traders were already concerned about the impact on Ukrainian wheat exports of Russian attacks on Ukraine’s port and energy infrastructure.
Meanwhile, winter grain crops are in mediocre condition in large parts of the European Union, EU crop monitoring service MARS said.
However, huge supply from Russia - the biggest exporter - has driven down wheat prices and analysts predict that shipments could set a new March record of 5 million tons this month.
Elsewhere, consultants AgRural said Brazil’s 2023/24 soybean harvest had reached 69% of the planted area, as of last Thursday, slightly below the 70% seen at the same time a year earlier.
Traders are waiting for a USDA planting intentions report due on Thursday, with analysts predicting an increase in soybean area and declines in corn and wheat area.