GRAINS-WHEAT RISES FOR 2ND DAY ON GLOBAL SUPPLY CONCERNS
Category: Grains
(Agriculture.com) – Chicago wheat rose for a second session on Wednesday with prices underpinned by concerns over global supplies following dry weather in the United States, Russia and Australia.
Corn gained after dropping in the last session to its lowest since April 20 while soybeans rose on expectations of Chinese demand for U.S. supplies.
The Chicago Board Of Trade most-active wheat contract added 0.6 percent at $5.13 a bushel by 0240 GMT, having closed up 0.9 percent on Tuesday.
Corn rose 0.7 percent to $3.86-1/4 a bushel and soybeans gained 0.6 percent to $10.07-1/2 a bushel. “Importers are not really concerned at this stage but clearly prices are going to move higher,” said one Singapore-based wheat trader at an international trading company.
“There are weather issues in Russia and Australia on top of dry growing season that we saw for the U.S. winter crop.” The U.S. Department of Agriculture late Monday rated 37 percent of the U.S. winter wheat crop in good to excellent condition, down from 38 percent a week earlier.
Dryness is raising worries over world supplies in parts of Russia, the world’s top exporter, and Australia, typically the world’s No. 4 supplier.
The USDA saw the U.S. corn crop as 78 percent good to excellent, down from 79 percent the previous week. But ratings were still among the highest for this point in the season over the last 20 years.
The USDA rated 75 percent of the U.S. soybean crop as good to excellent in its initial rating of the crop, boosting expectations for a big 2018 harvest.
Tensions between the United States and major trading partners hang over the market. Mexico imposed tariffs on American products ranging from steel to pork and bourbon, retaliating against import duties on metals imposed by President Donald Trump.
However, CBOT soybeans appeared to draw support from news of an offer by China to import an extra $70 billion of American goods over a year. China is the world’s biggest soy importer. Trump was to meet with his trade advisers to discuss China’s offer.
Commodity funds were net buyers of CBOT corn and wheat futures contracts on Tuesday, net sellers of soybeans and soymeal and net even in soyoil, traders said.
