Chicago wheat edged higher on Monday due to bargain buying, following its largest daily drop in over three months in the previous session, caused by expectations of better weather in key growing regions. Soybeans also regained some ground after Friday’s losses, while corn posted modest gains.
A Singapore-based grains trader noted that improved weather in Russia and the U.S. has eased concerns over wheat planting, while demand remains subdued. Buyers are cautious, anticipating a strong crop from Australia despite some damage from dry conditions.
On the Chicago Board of Trade (CBOT), the most-active wheat contract rose 0.2% to $5.74 a bushel after Friday’s 2.8% decline, the largest one-day drop since mid-July. Soybeans gained 0.5% to $9.75 a bushel, and corn rose 0.1% to $4.05-1/4 a bushel.
Improved rainfall in southern Russia and the central U.S. has alleviated some concerns about planting disruptions, though drought risks remain. Despite frost damage in Australia, the country is still on track for an above-average wheat harvest.
Meanwhile, changes in Russian grain export policies have raised concerns about potential oversupply in the U.S. market, weighing on prices. Russian grain exporters are set to sell directly to sovereign buyers, while non-Russian firms will only receive Russian grain through long-term agreements.
In Europe, heavy rains continue to delay France’s maize harvest, further slowing the process. Additionally, large speculators increased their net short positions in CBOT corn futures, while trimming their short positions in wheat and increasing them in soybeans, according to the Commodity Futures Trading Commission’s latest report.
