CANBERRA: Chicago wheat futures fell on Wednesday, as hopes for rain in parched Russian sowing areas led to investors locking in profits after Russian crop losses had pushed prices to a 10-month high. Soybean futures also slipped amid ample supply from South America, while corn dipped as US planting weather improved.

The most-active wheat contract on the Chicago Board of Trade (CBOT) was down 1% at $6.93-1/2 a bushel by 0220 GMT, after rising to $7.20 on Tuesday, its highest since July 2023.

Wheat prices have surged from a 3-1/2-year low in March, with analysts cutting Russian wheat harvest estimates by around 10 million metric tons due to dry conditions and frosts.

Russia is the world’s biggest and lowest-cost wheat exporter, and crop losses there are driving up prices despite improving growing conditions in other exporters including US and Canada, said Commonwealth Bank analyst Dennis Voznesenski.

“Also, on the demand side, you have China importing significantly more than many people expected at the start of the year,” he said, adding that prices should be well supported for the time being. Weather charts suggest that rain this week could reach more of southern Russia than previously expected, pausing wheat’s rally.

In neighbouring Ukraine, the grain union also this week slightly reduced its harvest estimates due to dry weather and a smaller planted area.