SINGAPORE- Chicago wheat futures rose on Thursday, recouping last session’s losses as the dollar pared gains and slowing grain shipments from top supplier Russia raised concerns over supplies.
Soybeans rose for the first time in three sessions, while corn gained for a second day in a row.
The most-active wheat contract on the Chicago Board of Trade (CBOT) rose 0.8 percent to $5.67-3/4 a bushel, soybeans added 0.4 percent to $10.12 a bushel and corn rose 0.8 percent to 4.65-1/2 a bushel.
The dollar was softer after the Federal Reserve indicated interest rate cuts were likely later this year even as uncertainty around US tariffs weighed, while the pound hit a four-month high ahead of the Bank of England’s policy decision.
A weaker dollar makes greenback-priced commodities cheaper for buyers holding other currencies.
Russia’s seaborne grain exports dropped by 52.3 percent year-on-year in February to 2.4 million metric tons, shipping data from industry sources showed on Wednesday.
Russia, the world’s top wheat exporter, shipped grain to global markets at a record pace in the first part of the 2024/25 marketing season, which began on July 1 last year, but a February export quota and bad weather at ports led to a sharp decline in exports.
However, traders are also monitoring results of a call between the leaders of the US and Ukraine regarding Russia’s invasion of Ukraine. An end to hostilities would be bearish news for wheat futures as it would create more security for Black Sea exports.
