SINGAPORE: Chicago wheat rose on Tuesday, as the market recovered from its lowest levels since early May on bargain-buying, although pressure from the expanding northern hemisphere harvest and Turkiye import ban limited the upside in prices.
Paris wheat falls on worry about Turkey’s import ban
Soybeans rose for a second session, while corn edged lower.
Fundamentals
The most-active wheat contract on the Chicago Board of Trade (CBOT) was up 0.2% at $6.08-3/4 a bushel, as of 0021 GMT, having dropped to its weakest since May 3 at $6.05-1/2 a bushel earlier on Tuesday.
Soybeans added 0.2% to $11.90 a bushel and corn lost 0.1% to $4.51-1/4 a bushel.
Rapidly expanding wheat harvest in the United States and other exporters is weighing on prices.
In Russia, the world’s No. 1 wheat exporter, export prices snapped a sixth weekly gain to retreat last week following Turkey’s decision to curb imports until mid-October. Turkey is the world’s fifth-largest wheat importer, buying mostly from Russia.
Forecasts called for welcome rains this week across portions of the Black Sea grain belt that should improve soil moisture, space technology company Maxar said in a daily weather note.
However, the US Department of Agriculture lowered its weekly US crop condition ratings for both winter and spring wheat, while analysts on average had expected no change.
The winter wheat harvest was 12% complete, the government said, ahead of the five-year average of 6%, but on the low-end of analyst estimates.
The USDA’s corn and soybean crop ratings were in line with trade expectations. The agency, after the CBOT closed on Monday, rated 74% of the US corn crop in “good-to-excellent” condition, down a point from last week, and soybeans were rated 72% “good-to-excellent” in the USDA’s first ratings of 2024 for the oilseed.
Brazil’s second corn harvest for the 2024 cycle had reached 10.4% of the planted area in the key center-south region, as of last Thursday, agribusiness consultancy AgRural said on Monday, its fastest pace in more than a decade.
The figure is the highest for the period since at least 2013, when AgRural started its weekly surveys on Brazil’s second corn crop, which represents about 75% of the national production each year.
Commodity funds were net sellers of CBOT wheat and soyoil futures contracts on Monday and net buyers of CBOT corn, soymeal and soybean futures, traders said.