CANBERRA: Chicago wheat futures rose on Thursday, supported by a weak dollar and rain in US cropping regions which, while giving a much-needed boost to soil moisture in many areas, is also disrupting the planting of spring crops.
Soybeans also climbed after Bloomberg reported on Wednesday that China would be open to trade negotiations with the United States, something that could revive US soy exports to China. Corn inched higher.
Wheat for July delivery on the Chicago Board of Trade (CBOT) was up 0.5% at $5.63-1/2 a bushel at 0455 GMT, with CBOT May soybeans rising 0.5% to $10.44 a bushel and July corn up 0.1% at $4.92-1/4 a bushel. Wheat and corn were heading for weekly falls, with the CBOT closed for a public holiday on Friday, while soybeans were slightly up from last week’s close.
The US dollar index was up 0.2% but stuck near three-year lows amid the fallout from US President Donald Trump’s tariff policies. “Some areas in the US have got too much rain and other areas still need some,” said Rod Baker, an analyst at Australian Crop Forecasters in Perth.
The wheat supply outlook in major northern hemisphere producers looks good for now and this combined with tepid global demand is keeping a lid on prices, he said.
However, “we’ve still got pretty tight carry-out (end-of-season stocks) in key exporters. We can’t afford any major production hiccups,” Baker added.
The central bank of Russia, the world’s biggest wheat exporter, said on Wednesday the country’s 2025 grain harvest could be better than last year’s, with a warm winter benefiting winter crops and a larger sowing area for spring crops.
Meanwhile, wheat stocks in Indian government warehouses surged to a three-year high this month, easing supply concerns. Bearishness from the ongoing trade war unleashed by Trump has already been factored into the market, analysts say, allowing hopes of trade deals with the US to boost prices. Commodity funds were net buyers of CBOT wheat, corn and soybeans on Wednesday, traders said.
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