Wheat set for biggest weekly rise in 3 months on European supply worries
SINGAPORE: Chicago wheat prices eased slightly on Friday but are set for their largest weekly gain in over three months, driven by short-covering and reduced European production estimates. Soybeans rose by 0.5%, while corn remained steady. Wheat gained 3.7% this week, soybeans 2.5%, and corn 1.3%. The European Commission reduced its EU wheat production forecast, and Ukraine’s grain output is expected to drop by 15% due to adverse weather.
SINGAPORE: Chicago wheat eased on Friday, although the market is poised for its biggest weekly gain in more than three months, with short-covering and concerns over lower production in Europe supporting prices.
Soybeans edged higher, while corn was almost flat with both markets on track to end the week on positive note.
FUNDAMENTALS
* The most-active wheat contract on the Chicago Board of Trade (CBOT) was down 0.3% at $5.47-1/4 a bushel, as of 0125 GMT, corn was down 0.1% at $3.95-3/4 a bushel and soybeans added 0.5% to $9.97 a bushel.
* The wheat market, which has gained 3.7% so far this week, is poised for its biggest weekly gain since mid-May. Soybeans are up 2.5% this week, their biggest in two months and corn has gained 1.3% this week, its first weekly rise in five.
* Short-covering is providing support to wheat, corn and soybean futures after agricultural markets suffered deep losses earlier this month.
* For August, soybeans are down 2.5% and corn has lost 1.3%, with both products in negative territory for a third straight month.
* The European Commission on Thursday cut its estimate for usable production of common wheat in the European Union in 2024/25 to 116.1 million metric tons from 120.8 million forecast a month earlier, still a four-year low.
* Ukraine’s combined grain and oilseed crop is likely to fall by 15% in 2024 due to unfavourable weather, acting farm minister Taras Vysotskiy said on Thursday, given no exact forecast.
* U.S. corn and soybean export sales for the week ended Aug. 22 came in above analyst expectations for 2024/25 sales, indicating that low prices may have renewed demand, traders said.
* Market players have raised concerns that recent hot, dry weather in the Midwest will dent expectations of bumper U.S. corn and soy crops. However, rainfall and forecasts for milder weather have allayed concerns, traders said.
* Commodity funds were net buyers of CBOT soybean, soyoil, corn, wheat and soymeal futures contracts on Thursday, traders said.
MARKET NEWS
* Global shares edged higher on Thursday, shrugging off investor disappointment at artificial intelligence powerhouse Nvidia’s results, while oil prices rebounded from two sessions of losses helped by Libyan supply disruptions.
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Source Link : https://www.zawya.com/en/markets/commodities/wheat-set-for-biggest-weekly-rise-in-3-months-on-european-supply-worries-h8mhys0a
