Chicago wheat falls to trade near 5-week low
Corn prices rebounded slightly today following Friday’s losses, while soybean prices experienced a slight dip. A Singapore-based grains trader noted that Turkey’s decision to halt wheat imports until October 15th will directly impact exports from the Black Sea region, particularly affecting Russia, the primary supplier. The most-active wheat contract on the CBOT fell to $6.24-3/4 a bushel, near its lowest since May 6th, amidst expectations of a robust US winter harvest and favorable crop conditions. Analysts anticipate the USDA’s June 12th crop production report to forecast a winter wheat harvest of 1.298 billion bushels, higher than May’s estimate. Despite Russia’s declaration of a federal emergency in 10 regions due to crop damage from May frosts, it’s not expected to disrupt export obligations significantly.
Corn inched higher after Friday’s losses, while soybeans dipped. “Turkey has ample domestic supplies,” said one Singapore-based grains trader. “Turkey’s decision will have direct impact on exports from the Black Sea region.”
The most-active wheat contract on the Chicago Board of Trade (CBOT) fell 0.4% to $6.24-3/4 a bushel, as of 0405 GMT, not far from Friday’s lowest since May 6 at $6.18 a bushel.
Corn added 0.5% to $4.51 a bushel, while soybeans gave up 0.1% to $11.78 a bushel.
Turkey will halt wheat imports from June 21 until at least Oct. 15 to protect farmers from price fluctuations, ensure domestic procurement of raw materials and create a favourable market for producers, the agriculture ministry said. Turkey is the world’s fifth largest wheat importer, buying mostly from Russia.
There was additional pressure on wheat stemming from expectations of a bumper US winter harvest, which have eased worries arising from Russian crop damage.
Analysts in a Reuters poll published on Thursday estimated the US Department of Agriculture’s June 12 crop production report will forecast a harvest of 1.298 billion bushels of winter wheat, above the May estimate.
Russia said on Friday it was declaring a federal emergency in 10 regions because of damage to crops from May frosts, a measure that will help farmers with extra funds but which officials said should not derail export obligations.
Favourable crop conditions in the United States, where farmers have made steady progress in planting corn and soybeans while starting winter wheat harvesting, were also weighing on prices.
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