Chicago wheat experiences third consecutive drop, while soybeans rebound and corn strengthens in the face of global supply dynamics.
Chicago wheat faced downward pressure for the third consecutive session on Wednesday, influenced by anticipations of ample supplies from the northern hemisphere later this year. Conversely, soybeans saw an uptick after two days of decline, while corn also displayed firmness.
A trader based in Singapore noted, “Wheat crops are looking better in Russia and the US. With good supply prospects, millers are not rushing to buy wheat, so the demand is a bit weak.”
The active wheat contract on the Chicago Board of Trade (CBOT) slipped by 0.1% to $5.57-1/4 a bushel, following a 1.4% decline on Tuesday. In contrast, soybeans increased by 0.5% to $11.80 a bushel, and corn rose by 0.4% to $4.32-3/4 a bushel.
Argus, a commodity analysis firm, revised its forecast for Russian wheat production this year to 92.1 million metric tons, attributing the adjustment to an expanded estimate for the winter wheat area, despite less favorable prospects for spring wheat planting and yields.
This upward revision follows a US Department of Agriculture (USDA) report indicating a robust condition of the winter crop, despite previous concerns over adverse weather conditions. The USDA’s crop progress figures revealed a good-to-excellent condition for 56% of US winter wheat, alleviating worries regarding past dry weather in the wheat-growing Plains.
Expectations of increased rainfall in the US Plains and drier conditions in the southern Delta area further allayed concerns about weather-related stress to wheat crops and potential delays in corn planting.
Traders are now repositioning themselves in anticipation of key data releases, including US inflation data on Wednesday and the USDA’s monthly supply and demand report along with the Brazilian agency Conab’s monthly national crop forecasts on Thursday.
Commodity funds were reported as net sellers of CBOT corn, soybeans, wheat, soymeal, and soyoil futures contracts on Tuesday.
