GRAINS-Wheat futures rise from three-month low as Aussie crop declines
CHICAGO, Sept 5 (Reuters) – Chicago Board of Trade wheat futures edged higher on Tuesday, after hitting a three-month low, amid short covering and concerns about dry weather threatening production in export hubs like Australia.
Corn futures also rose slightly, while the soybean market ticked lower. A firm dollar, reflecting renewed investor concerns about economic growth, helped cap U.S. grain prices. FRX/
Wheat futures struck a three-month low on large Russian supplies and continuing Ukrainian exports, before turning higher. Dry conditions in major exporters Australia, Argentina and Canada have raised doubts about the availability of global supplies later in the season, analysts said.
Australia’s wheat output is forecast to drop 36% from last year as dry weather curbs yields. The Australian Bureau of Agricultural and Resource Economics and Sciences trimmed its crop outlook by 800,000 metric tons to 25.4 million tons.
Dry weather in September could lead to further reductions, traders said.
“We are in an El Nino, and that’s generally bad for Australia,” said Matt Wiegand, commodity broker for FuturesOne.
The most-active wheat contract Wv1 was up 6 cents at $6.01-1/2 a bushel by 11:30 a.m. CDT (1630 GMT) after slipping to its lowest since May 31.
“Wheat markets still appear relatively relaxed despite the fact that the signs of tightening supply are gradually increasing,” Commerzbank analysts said in a note.
CBOT corn Cv1 inched up 3-1/4 cents to $4.84-3/4 a bushel and soybeans Sv1 were down 6-1/4 cents at $13.63 a bushel.
Traders are anticipating the start of U.S. corn and soy harvests, after a hot, dry end to summer caused concern about crop stress and accelerated maturation.
The U.S. Department of Agriculture is slated to issue weekly crop-progress data after the grain markets close. The department separately reported exporters sold 251,000 metric tons of U.S. soybeans to unknown destinations for delivery in the 2023/24 marketing year.
(Reporting by Tom Polansek in Chicago. Additional reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore; Editing by Sherry Jacob-Phillips, Sohini Goswami, Ed Osmond and Richard Chang)
((Thomas.Polansek@thomsonreuters.com))
Recommended for you
