Chicago Board of Trade wheat futures firmed on Wednesday, edging higher on a round of bargain buying a day after prices hit their lowest in nearly six years, traders said. Corn and soyabean futures were close to unchanged, with a bearish tone remaining firmly in place following the US Agriculture Department's forecast for wilting demand during the 2015/16 crop year.
USDA also said on Tuesday global wheat supplies would reach record levels this year due to falling consumption in China and India. "Wheat, corn and soyabeans are still burdened by the forecasts of large global supplies made by the USDA monthly report on Tuesday," said Frank Rijkers, agrifood economist at ABN Amro Bank. "But markets have been moving in and out of positive territory today because of the impact of re-positioning after the USDA report and bargain-hunting following yesterday's price falls."
At 11:14 am CST (1714 GMT) CBOT March soft red winter wheat futures were up 3-3/4 cents at $4.61-1/4 a bushel. The most-active contract fell to hit its lowest since June 2010 on Tuesday. CBOT March soyabeans were 1/2 cent lower at $8.62-3/4 a bushel and CBOT March corn was down 3/4 cent at $3.60-1/4 a bushel. Weakening export demand for US supplies amid forecasts for huge crops in South America added pressure to the market.
Russia will ban imports of corn and soya from the United States starting from February 15, a spokesman for Russia's agricultural watchdog, Rosselkhoznadzor, told Reuters on Wednesday. The watchdog said its deputy head, Yulia Shvabauskene, had told the United States about concerns related to the phytosanitary safety of corn and soyabean imports.