GRAINS-Wheat gains after survey shows lower Canadian crop
Canadian farmers to reap less wheat than expected due to drought
Bumper Russian supplies curb upside in Chicago wheat futures
Adds details in paragraph 6 and 9; updates prices
PARIS/SINGAPORE, Aug 30 (Reuters) – Chicago wheat prices inched higher on Wednesday, snapping a four-day run of declines, after a survey showed a sharp fall in Canadian production that could curb global supplies.
Soybean and corn prices rebounded after falling on Tuesday, when U.S. government data showed that hot and dry weather had not damaged U.S. crops as much as thought.
“Wheat futures have firmed today but the wheat market is focused on record supplies from Russia,” a Singapore-based trader said. “It is difficult for prices to rally given the supplies from Russia.”
The most active wheat contract on the Chicago Board of Trade (CBOT) Wv1 was up 1% at $6.06-1/4 a bushel, as of 1100 GMT. Soybeans Sv1 gained 0.5% to $13.99-3/4 a bushel and corn Cv1 added 0.9% at $4.91 a bushel.
Wheat production in Canada fell by 14.2% in 2023 compared to 2022, a Statistics Canada survey showed on Tuesday, due to lower-than-average precipitation and high temperatures.
Damages to durum wheat crops from drought in Canada, combined with adverse weather in Europe, are likely to lead to higher pasta prices, producers said.
Russia’s Sovecon agriculture consultancy on Monday raised its forecast for this year’s Russian harvest to 92.1 million metric tons from 87.1 million tons.
Data showed that soft wheat exports from the European Union were down nearly 30% so far in the 2023/24 season.
On the demand side, Egypt is in the market to buy milling wheat for shipment Oct. 5-20 and/or Oct. 25-Nov. 10 and/or Nov. 15-30. The lowest offer was at $259.42 per ton FOB for 60,000 tons of French wheat.
In the soybean market, prices were supported by the U.S. Department of Agriculture (USDA) confirming private sales of 246,100 tons of U.S. soybeans and 105,000 tons of U.S. soybean meal for shipment to unknown destinations in the 2023/24 marketing year.
Soybean prices have risen around 4.5% this month, as hot and dry weather in the U.S. damages crops at a crucial development phase.
Dry weather is expected to continue over the next few weeks but U.S. government data on Monday showed the damage to soybeans and corn was less severe than feared.
Soybeans are trading at their highest levels relative to corn since late 2016, which could lead to overproduction of U.S. soybeans in the coming years, moderating prices.
Prices at 1100 GMT
Last
Change
Pct Move
CBOT wheat Wv1
606.25
5.75
0.96
CBOT corn Cv1
491.00
4.25
0.87
CBOT soy Sv1
1399.25
6.75
0.48
Paris wheat BL2c1
227.00
1.75
0.78
Paris maize EMAc1
214.75
1.00
0.47
Paris rapeseed COMc1
462.00
-2.75
-0.59
WTI crude oil CLc1
81.74
0.58
0.71
Euro/dlr EUR=
1.09
0.00
0.12
Most active contracts – Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne
(Reporting by Naveen Thukral, Peter Hobson and Sybille de La Hamaide; Editing by Subhranshu Sahu, Rashmi Aich and Conor Humphries)
((peter.hobson@thomsonreuters.com;))
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