Wheat rises for second session on lower Russian supply, weather woes
Chicago wheat edged higher on Tuesday, driven by expectations of lower output in Russia due to war-related disruptions and unfavorable weather in key exporting regions. Soybeans and corn also saw slight gains, although ample U.S. harvest supplies and improved weather forecasts in Brazil weighed on prices. Wheat gained 0.8%, soybeans rose 0.2%, and corn increased 0.3%.
SINGAPORE, Oct 8 (Reuters) -Chicago wheat edged higher on Tuesday, with prices supported by expectations of lower output in Russia amid its war with Ukraine and adverse weather conditions in key exporting countries.
Soybeans and corn inched higher, although prices remained under pressure from ample supplies from U.S. harvest and an outlook for improved weather in Brazil.
FUNDAMENTALS
* The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 was up 0.8% at $5.97-1/4 a bushel, as of 0013 GMT. Soybeans Sv1 added 0.2% to $10.36-1/2 a bushel and corn Cv1 rose 0.3% to $4.27-1/4 a bushel.
* Russia’s grain harvest will be hit by the impact of Ukraine’s attacks on grain-producing regions close to the border and by bad weather in many other regions, the RIA news agency cited Agriculture Minister Oksana Lut as saying on Monday.
* Russia, the world’s top wheat exporter, has officially forecast this year’s grain harvest at 132 million metric tons, an 11% drop from 148 million tons in 2023 and a 16% drop from a record 158 million tons in 2022.
* Additional support for the wheat market stemmed from dry conditions in several key production areas, including the southern U.S. Plains and the Black Sea region.
* Corn and soybeans remain anchored by rising supplies from U.S. harvest of record-yielding crops.
* The U.S. soybean harvest was 47% complete by Sunday and the corn harvest was 30% finished, data from the U.S. Department of Agriculture showed on Monday, with both crops ahead of average.
* Brazilian soybean farmers have been struggling with a lack of rains, but the weather in the world’s top exporter of the oilseed is expected to improve on forecasts of rains.
* Brazil’s soybean planting for the 2024/25 season, as of last Thursday, reached 4.5% of the total expected area, agribusiness consultancy AgRural said on Monday, up from 2% the week before but still well below last year’s 10%.
* Grain traders are also squaring positions ahead of a monthly U.S. Department of Agriculture (USDA) supply-and-demand report due on Friday.
* Commodity funds were net buyers of CBOT wheat, corn, soybean and soyoil futures contracts on Monday and net sellers of soymeal, traders said. COMFUND/CBT
