SINGAPORE: Chicago wheat futures rose on Tuesday, recouping some of last session’s losses with a potential decline in yields following hot and dry weather in the US and Europe underpinning prices.
Soybeans and corn fell after a crop tour forecast above-average yields in Ohio, easing concerns over supplies.
“Chicago wheat prices are strengthening as we are seeing some adverse weather for the US spring crop,” said a Singapore-based trader.
“But global the market is more worried about the Black Sea region where war risk premiums are going up.”
The most-active wheat contract on the Chicago Board of Trade (CBOT) added 0.4% to $6.28-1/4 a bushel, as of 0402 GMT.
Soybeans lost 0.2% to $13.59-1/2 a bushel and corn gave up 0.4% to $4.80-3/4 a bushel.
The condition of the US spring wheat crop dropped in the latest week, the government said on Monday, as forecasts for hot and dry weather continued in the northern Plains this week.
The stress on the high-protein spring wheat crop could add to concerns about production shortfalls in key growing areas like Canada and the European Union.
The European Union’s crop monitoring service on Monday reduced its forecast for this year’s average EU soft wheat, maize and rapeseed yields for a third consecutive month and warned of a significant fall in wheat quality after summer rain.
For soybeans and corn, extreme heat is expected across large swathes of the US Midwest this week, with temperatures above 100 degrees Fahrenheit (37.8 degrees Celsius) across the US Plains.
Funds sell CBOT corn, soy and wheat as supply fears wane
Sweltering temperatures, combined with a lack of rain, could damage soybean crops during a crucial development window.
However, Ohio corn yield prospects and soybean pod counts are above last year and higher than the three-year average, scouts on an annual tour of top US production states found on Monday.
US corn ratings fell 1 percentage point to 58% good to excellent and soybean ratings were flat at 59% good to excellent.
In the Black Sea region, Ukraine is considering using its newly tested wartime export corridor for grain shipments after the first successful evacuation of a vessel along the route last week, a senior agricultural official said on Monday.
Russia has blockaded Ukrainian ports since it invaded its neighbour in February 2022 and threatened to treat all vessels as potential military targets after pulling out of a UN-backed safe-passage deal for Black Sea grain exports last month.
Commodity funds were net buyers of CBOT soybean and soymeal futures contracts on Monday, traders said, and net sellers of CBOT corn, wheat and soyoil futures contracts.
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