SINGAPORE: Chicago wheat futures gained more ground on Wednesday, with prices supported by dry weather that threatens to reduce yields in key producing regions.

Chicago wheat rises on lower Russian supply

Soybeans and corn fell amid expectations of record US output that will add to already plentiful world supplies.

Fundamentals

• The most-active wheat contract on the Chicago Board of Trade (CBOT) rose 0.3% to $5.96-1/4 a bushel by 0014 GMT, gaining for a third straight session. Soybeans fell 0.1% to $10.15-3/4 a bushel and corn gave up 0.1% to $4.20-1/2 a bushel.

• Dry weather in leading exporters such as Australia, Russia and the United States is raising worries over world supplies.

• Russia, the world’s biggest wheat exporter, has so far harvested about 85 million metric tons of wheat and 120 million tons of grain in gross weight from 90% of the seeded area, Agriculture Minister Oksana Lut said on Tuesday.

• Russia has officially forecast this year’s grain harvest at 132 million tons, an 11% drop from 148 million tons in 2023 and a 16% fall from a record 158 million tons in 2022.

• Soft wheat exports from the European Union since the start of the 2024/25 season in July had reached 6.35 million metric tons by Oct. 6, down 29% from 8.9 million tons a year earlier, data published by the European Commission showed on Tuesday.

• However, steady planting progress in the United States, where farmers had seeded 51% of their winter wheat by Sunday, tempered some of the worries about dry weather.

• Traders were also shifting attention toward monthly US government crop forecasts on Friday, including updated estimates of the US corn and soybean harvests after projections of record yields for both crops last month.

• Rain forecast in parts of Brazil was seen aiding early planting, which had been delayed due to overly dry soil conditions.

• Commodity funds were net sellers of CBOT soyoil, soybean, corn and soymeal futures contracts on Tuesday and net buyers of wheat futures, traders said.