SINGAPORE – Chicago wheat rose more than 1 percent on Tuesday with bargain-buying supporting prices after the market dropped to its lowest in almost two years on plentiful global supplies and improved US weather.
Corn and soybeans inched higher, but the upside potential in both markets is likely to be limited amid favorable US planting weather and stiff competition in the export market.
“US weather for winter wheat has improved,” said one Sydney-based grains trader.
“Overall, there are no major production issues in most of the top exporting countries. The global supply picture is looking good.”
The most-active wheat contract on the Chicago Board of Trade (CBOT) jumped 1.1 percent to $6.25 a bushel, after dropping more than 2 percent on Monday to its lowest since July 2021.
Corn added 0.6 percent to $5.88 a bushel and soybeans gained 0.4 percent at $14.33-1/2 a bushel.
The US Department of Agriculture (USDA) on Monday rated 28 percent of US winter wheat in “good-to-excellent” condition, up 2 percentage points from last week, following much-needed rains in the Plains, but still among the lowest on record for this time of year.
For corn, the USDA said planting was 26 percent complete as of Sunday, just below the average analyst estimate of 27 percent and matching the five-year average.
US soybean planting was 19 percent complete, ahead of the average analyst estimate of 17 percent and the five-year average of 11 percent.
The corn and soybean markets are facing headwinds as large Brazilian crops are eating into demand for US supplies.
Consultancy Strategie Grains raised its forecast for 2023 European Union rapeseed production this year to 20 million tons from 19.5 million a month earlier, citing favourable crop conditions in much of Europe. – Reuters
