SINGAPORE- Chicago wheat futures climbed on Thursday, with prices trading close to a 10-month high hit in the previous session, as expectations of lower production in top exporter Russia continued to buoy the market.
Corn futures rose, tracking the strong performance in wheat prices, while soybeans slid.
“There are uncertainties about Russian output and how much they will be able to export next year,” said one Australia-based trader. “Corn is just following wheat higher.”
The most-active wheat contract on the Chicago Board of Trade (CBOT) was up 0.2 percent at $6.94-1/2 a bushel, having climbed to its highest since last July at $7.16-3/4 a bushel on Wednesday.
Corn edged 0.1 percent higher to $4.61-1/2 a bushel, while soybeans lost 0.1 percent to $12.44-3/4 a bushel.
Russia’s IKAR agricultural consultancy has cut forecasts for Russia’s wheat harvest and exports after unusually hot spring weather combined with bitter frosts in the heart of Russia’s bread basket.
IKAR cut its Russian wheat crop forecast to 83.5 million metric tons from 86 million tons and reduced the projection for the country’s exports to 45 million tons from 47 million tons.
Traders are keeping a close watch on Russia, with some rain relief from dryness expected in the next 11 to 15 days, according to an analyst note.
In Ukraine, crops have also faced dryness and frosts. A state weather forecaster said frosts had not significantly damaged crops, but traders are wary after consultants APK-Inform on Monday warned of yield losses.
