Chicago wheat prices surged almost 2% on Thursday, poised for their largest single-day increase in six weeks, driven by Russia’s attack on Ukraine’s Odesa port and concerns about reduced wheat output in France.
Soybeans also saw a rise for the second consecutive session due to bargain buying, while corn experienced a slight uptick. However, gains in both soybean and corn markets were limited by expectations of abundant global supplies.
“The Russian missile strike on Ukraine’s Odesa port last night is the key factor supporting prices today,” a grains trader in Singapore commented.
As of 0218 GMT, the most active wheat contract on the Chicago Board of Trade (CBOT) increased by 1.9% to $5.45 per bushel, marking its biggest daily gain since early July. Soybeans climbed 0.4% to $9.72-1/2 per bushel, and corn rose by 0.5% to $4.02-3/4 per bushel.
Russian forces targeted port infrastructure in Odesa on Wednesday evening, resulting in injuries to at least two people, according to Ukrainian officials. Recently, lower-cost supplies from the Black Sea region have been weighing on prices.
In France, this year’s rain-affected soft wheat crop is expected to produce the smallest volume since the 1980s, with mixed milling quality, as reported by FranceAgriMer on Wednesday.
For soybeans, the US Department of Agriculture (USDA) raised its forecast for the 2024/25 US crop to a record level in its monthly outlook on Monday. The increase in soybean production is attributed to lower planting costs compared to corn, floods in some regions, and a fast winter-wheat harvest.
Weather conditions remain favorable for corn and soybean crops in the US Midwest, while Argentina’s 2023/24 corn harvest is projected to reach 49 million metric tons, an increase from the previous forecast of 47.5 million tons, according to the Rosario grains exchange.
Traders are closely watching drought conditions in Ukraine, where producers have warned that the corn crop could decrease by a third from last year if there is no relief from the dry weather.
On Wednesday, commodity funds were net buyers of CBOT soybean, soymeal, corn, and wheat futures contracts, while they were net sellers of soyoil.
