SINGAPORE: Chicago wheat inched higher on Thursday, after hitting a four-week low in the previous session on pressure from a rapidly advancing US harvest, with crop prospects in the Black Sea region likely to influence prices in the coming days.
Soybeans and corn rose for the first time in eight sessions, although ample world supplies curbed gains.
“More price volatility is expected in June as the Black Sea and other region’s crop surveys will be updated,” according to a Rabobank report.
The most-active wheat contract on the Chicago Board of Trade (CBOT) added 0.2% to $6.47-3/4 a bushel as of 0354 GMT, having dropped to its lowest since May 10 at $6.43 a bushel on Wednesday.
Soybeans rose 0.4% to $11.81-3/4 a bushel and corn gained 0.5% at $4.41-1/2 a bushel.
Wheat supplies from freshly-harvested crops in the United States and other northern hemisphere producers are likely to keep a lid on prices.
US winter wheat is 6% harvested, the US government said on Monday, ahead of the five-year average pace.
Russia will boost financial support to farmers but is not expected to ban grains exports if a federal emergency is declared due to frosts that have damaged crops, industry experts said on Wednesday.
The prolonged absence of rain across most of Ukraine caused a deterioration of conditions for all crops last month but has yet to have critical consequences, analysts said on Wednesday, citing data from state agricultural meteorologists.
China will expand its wheat stockpile by increasing buying from domestic producers as the world’s top producer and consumer of the staple grain looks to secure supply amid recent weather-related damage to global production.