GRAINS-Wheat gains for third session on US weather, Black Sea supply woes
SINGAPORE, Aug 24 (Reuters) – Chicago wheat rose on Thursday, gaining for a third consecutive session as dry weather in the U.S. spring crop areas and the latest Russian attack on a Ukrainian grain port supported prices.
Soybeans and corn extended gains amid forecasts for hot and dry weather in the U.S. Midwest.
“U.S. weather is becoming an issue for corn, wheat and soybeans,” said a Singapore-based trader, who also said that “there are attacks on Ukrainian infrastructure on a regular basis but the market wants to see disruption to Black Sea supplies before reacting too much.”
U.S. spring wheat crop is suffering due to dry weather in the northern Plains, which is likely to reduce yields.
Russian drones struck Ukrainian grain facilities at the Danube River port of Izmail overnight, in what a senior official said was a systematic attempt by Moscow to prevent Kyiv from exporting grain to the world.
Deputy Prime Minister Oleksandr Kubrakov said the port’s export capacity had been reduced by 15% and that 13,000 metric tons of grain had been destroyed.
However, market reaction has been muted because the impact on overall Black Sea supply appeared to be limited, as with previous strikes against grain infrastructure sites.
In soybean and corn markets, hot and dry weather forecast this week for the U.S. Midwest could curb yields, although a crop tour has forecast higher output in some of the key growing areas.
Illinois soybean pod counts and corn yield prospects are above last year and the three-year average, scouts on an annual Midwest crop tour found on Wednesday.
Earlier, the ProFarmer Crop Tour found Indiana and Nebraska corn yield prospects were higher than last year, but below the three-year average.
Nebraska’s soybean pod count also beat year-ago findings but fell below three-year averages, while Indiana’s soybean crop potential is the strongest in five years, tour officials said.
Soybeans were further supported by the U.S. Department of Agriculture’s report of private export sales of 100,000 tons of soymeal to unknown destinations for delivery in the 2023/24 marketing year.
In news, Argentina’s farmlands planted with corn should reach an estimated 7.3 million hectares for the 2023/24 cycle, the Buenos Aires grains exchange said in a pre-season report on Wednesday, though dry conditions could delay the crop’s sowing.
Initial quality results from this year’s French soft wheat harvest showed 93% of the crop with protein content above the milling requirement of 11%, up from a five-year average of 87% of the crop, farm office FranceAgriMer said on Wednesday.
Commodity funds were net buyers of CBOT soybean, corn, wheat, soyoil and soymeal futures contracts on Wednesday, traders said. COMFUND/CBT
(Reporting by Naveen Thukral; Editing by Rashmi Aich and Sonia Cheema)
((naveen.thukral@thomsonreuters.com; +65-6870-3829; Reuters Messaging: naveen.thukral.thomsonreuters.com@reuters.net))
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