Wheat under pressure on supply outlook; corn, soybeans climb
Business
Soybeans rose for the first time in three sessions, while corn also firmed.
SINGAPORE (Reuters) -- Chicago wheat edged lower on Wednesday, falling for a third straight session, weighed down by expectations of bumper supplies from the northern hemisphere later this year.
Soybeans rose for the first time in three sessions, while corn also firmed.
“Wheat crops are looking better in Russia and US,” a Singapore-based trader said.
“With good supply prospects, millers are not rushing to buy wheat, so the demand is a bit weak.”
The most-active wheat contract on the Chicago Board of Trade (CBOT) was down 0.1% at $5.57-1/4 a bushel as of 0315 GMT, after dropping 1.4% on Tuesday. Soybeans rose 0.5% to $11.80 a bushel, and corn gained $0.4% at $4.32-3/4 a bushel.
Commodity analysis firm Argus has raised its forecast for Russian wheat production this year to 92.1 million metric tons, with an increased estimate for the winter wheat area outweighing less favourable prospects for spring wheat planting and yields.
The estimate for higher Russian output comes after a US report showed healthy condition of the winter crop despite adverse weather conditions.
US Department of Agriculture (USDA) crop progress figures released on Monday showed a good-to-excellent condition for 56% of US winter wheat, despite worries over the impact of past dry weather in the wheat-growing Plains.
Forecasts for more rain in the US Plains next week and drier conditions in the southern Delta area further eased fears about weather-related stress to wheat crops and delays to corn planting.
Meanwhile, traders are adjusting their positions ahead of US inflation data on Wednesday, and the USDA’s monthly supply and demand report and Brazilian agency Conab’s monthly national crop forecasts on Thursday.
Commodity funds were net sellers of CBOT corn, soybeans, wheat, soymeal and soyoil futures contracts on Tuesday, traders said.
