Chicago wheat gained ground on Tuesday, rising to a one-week high, as expectations of a cut in U.S. supplies next season and doubts about renewing an export deal with the Black Sea supported prices.
Corn and soybeans fell on forecasts for record production in the US.
“USDA (U.S. Department of Agriculture) released winter wheat acreage harvest, and after dividing acres by grade, hard red winter wheat abandonment ended up at 38.3%, the highest in recorded history since 1983,” said Terry Reilly. , Senior Analyst at Futures International.
The most active wheat contract on the Chicago Board of Trade (CBOT) rose 0.1% to $6.61-3/4 a bushel by 0213 GMT, having hit its highest level since May 8 at $6.64-1/4 a bushel.
Corn fell 0.4% to $5.90-1/4 a bushel, while soybeans fell 0.2% to $13.98-1/2.
Wheat prices rose on fears of a tightening supply after the USDA’s first official forecast for U.S. wheat production in 2023-24 fell short of most analysts’ expectations of 1.659 billion bushels.
The hard red winter wheat harvest in the drought-stricken plains will be the smallest since 1957.
Efforts to renew a deal allowing safe grain exports from Ukraine to the Black Sea will continue in the coming days, the UN aid chief said on Monday, as Russia threatens to break up on May 18 over sanctions on its grain. Exports.
Export prices for Russian wheat fell further last week due to weak demand and weak global markets.
The price of Russian wheat with a protein content of 12.5% from the Black Sea in June was $248 a tonne, down $6 from last week, agricultural consultancy IKAR said.
Corn and soybeans face headwinds after the USDA on Friday forecast a strong year-over-year increase in inventories due to record U.S. crops expected from both crops. However, the harvest outlook depends on the weather in the Midwest in the coming months.
After Monday’s market close, the USDA said the U.S. corn crop was 65% complete and the soybean crop 49%, slightly below trade expectations but above their respective five-year averages.
Commodity funds were net buyers of CBOT futures for wheat, corn, soybeans and soybean oil on Monday and net sellers of soybean meal contracts, traders said. (Reporting by Naveen Tughral; Editing by Subranshu Sahu)
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