SINGAPORE: Chicago wheat prices rose on Friday, as hot and dry weather in the United States and other key exporting countries raised the prospect of lower yields.
Soybeans gained ground and were poised for a second straight weekly rise as adverse weather is likely to trim US output.
“There seems to be some support from dry weather in US and Argentina,” a Singapore-based trader said.
“Although buyers are not rushing to cover supplies at these levels.”
The most-active wheat contract on the Chicago Board of Trade (CBOT) rose 0.6% to $6.35-1/2 a bushel at 0312 GMT.
Soybeans added 0.4% to $13.76-1/2 a bushel and corn rose 0.1% to $4.88-3/4 a bushel.
For the week, soybeans are up almost 2% while corn and wheat are down.
The US spring wheat crop is suffering, with dry weather in the northern Plains likely to reduce yields.
Argentina’s current wheat crop needs precipitation in the coming days across key farmland in order to stave off a hit to yields, a weekly report from the Buenos Aires Grains Exchange showed on Thursday.
Wheat rebounds as US crop ratings decline; soybeans, corn firm
Prolonged heat across many Ukrainian regions has dried the upper soil level, creating unfavourable conditions for the forthcoming winter grain sowing, analysts at APK-Inform quoted state weather forecasters as saying on Thursday.
The European Commission further reduced its outlook for European Union production of major cereal and oilseed crops this season, with maize seeing the sharpest reduction.
The commission lowered its forecast for 2023/24 EU usable maize production to 61.7 million metric tons (mmt) from 63.0 mmt projected in July.
It cut its forecast for 2023/24 usable soft wheat to 126.1 mmt from 126.4 mmt in July.
In the soybean market, forecasts of hot and dry weather raised crop concerns. Soybeans are susceptible to extreme temperatures with a lack of rainfall forecast for the next several weeks. The crop is at its crucial stage of development.
This week’s Midwest crop tour has generally shown soy and corn potential above last year’s but mixed levels compared with the average of recent years.
Minnesota’s soybean yield potential fell to the lowest in four years as dry weather withered crops in the country’s third-largest grower of the oilseed, scouts on an annual crop tour of top US producing states found on Thursday.
However, Illinois soybean pod counts and corn yield prospects are above last year and the three-year average, scouts on an annual Midwest crop tour found on Wednesday, limiting gains.
Commodity funds were net buyers of CBOT soybean and soymeal futures contracts, and net sellers of corn, wheat and soyoil futures contracts on Thursday, traders said.
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