Wheat heads for ninth weekly loss despite US export boost
- The most-traded wheat contract on the Chicago Board of Trade (CBOT) was up 0.5% at $6.06-3/4 a bushel
Chicago wheat futures rose on strong US demand and potential Chinese purchases, rebounding from recent lows. Corn and soybeans saw mixed movements, with overall weekly declines influenced by ongoing US harvests.
- Factors driving wheat price recovery.
- Impact of US harvest on corn and soybean prices.
- Global supply dynamics affecting grain markets.
Chicago wheat futures rose for a second day on Friday as strong demand for US grain and reports that China could buy from the United States arrested a decline that pushed prices earlier in the week to their lowest in almost four months.
Corn futures edged lower and soybeans rose slightly, but both were heading for weekly falls as the ongoing US harvest added to supply.
The most-traded wheat contract on the Chicago Board of Trade (CBOT) was up 0.5% at $6.06-3/4 a bushel at 0504 GMT but 3% lower over the week and headed for a ninth consecutive weekly loss.
Prices fell to $5.93-1/4 on Wednesday, the lowest since July 1, and are nearly 25% below highs reached in September, when the Russia-Ukraine war reduced supply by curtailing exports via the Black Sea.
Bloomberg reported on Thursday that buyers in China, the world’s biggest crop importer, were seeking offers on US soft red winter wheat.
US exports were already running above expectations, with USDA data showing net export sales of 2026-27 wheat in the week to October 22 at 849,800 metric tons, a marketing-year high.
Limiting price gains was the possibility that shipments from the Black Sea could increase after sources said Russia had allowed grain export vessels to leave the Sea of Azov for the first time since July 10.
However, attacks continue in the region, with a Greek container ship sunk on Thursday.
“We must be close to a price floor,” said Rod Baker, an analyst at Bendigo Bank Agribusiness.
Buyers had responded to lower Black Sea exports by scaling back purchases and waiting for new supply from Australia and Argentina, which expect decent harvests in the coming months, he said.
Large short positions held by funds also create space for bouts of short selling that would push prices higher, he said.
In other crops, CBOT corn slipped 0.2% to $4.50-1/2 a bushel and was down 1.2% over the week, while soybeans rose 0.2% to $12.37-1/4 a bushel and were 1.6% below last week’s close.
Corn was set for a fifth consecutive weekly decline and soybeans for a third.