Wheat leaps to 10-month high as Russian harvest downgraded again
CANBERRA, May 28 (Reuters) – Chicago wheat futures surged nearly 3% to $7.16-3/4 a bushel, the highest since July, due to concerns over adverse weather in Russia affecting yields. Soybean and corn futures also rose, with soybeans at $12.51-1/2 and corn at $4.70-1/4 a bushel. Russia’s wheat production forecast dropped to 81.5 million metric tons. Ukrainian forecasts and EU crop yields were also downgraded. U.S. markets were closed on Monday.
CANBERRA, May 28 (Reuters) -Chicago wheat futures rose nearly 3% on Tuesday to their highest level since July, supported by increasing concerns that adverse weather in top exporter Russia is reducing yields and tightening global supply.
Soybean and corn futures also gained.
FUNDAMENTALS
* The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 was up 2.8% at $7.16-3/4 a bushel at 0044 GMT after rising as high as $7.20.
* CBOT soybeans Sv1 were up 0.3% at $12.51-1/2 a bushel and corn Cv1 was 1.2% higher at $4.70-1/4 a bushel.
* U.S. markets including the CBOT were closed on Monday.
* Wheat prices hit a 3-1/2-year low of $5.24 a bushel in March as Russia exported record amounts of grain but have since surged 37%.
* Russian consultancy IKAR on Monday cut its forecast for Russian wheat production to 81.5 million metric tons and exports to 44 million tons.
* Only a month ago, IKAR predicted wheat production of 93 million tons and exports of 52 million tons.
* Some 1.5 million hectares of Russian crops have been damaged by frosts and the total figure may rise to 2 million hectares, the head of Russia’s Grain Union said.
* Drought has also harmed southern cropping regions and weather charts showed little rain in the coming days. Soil in Siberia is waterlogged. The pace of sowing is the slowest in six years.
* Russian wheat export prices continued to rise last week.
* Meanwhile, in neighbouring Ukraine, traders union UGA downgraded its forecast for the country’s 2024 combined grain and oilseed harvest to 74.6 million tons from 76.1 million tons.
* Speculators bought back huge numbers of short positions in CBOT wheat, corn and soybeans in recent weeks, helping push up prices.
* Elsewhere, the European Union crop monitoring service trimmed its outlook for this year’s EU soft wheat and rapeseed yields while upping its forecasts for barley and maize.
* Cold temperatures across much of Argentina’s farming heartland over the weekend will help slow a severe leafhopper insect outbreak that has damaged the country’s corn crop, the Rosario grains exchange said.
* India is likely to receive above-average monsoon rains this year, the weather office said, retaining its April forecast and keeping alive the possibility of higher farm output.
MARKETS NEWS
* World shares firmed on Monday as investors braced for a busy run of inflation data that could set the scene for a European rate cut as soon as next week and a U.S. policy easing within just a few months. MKTS/GLOB
Source Link : https://www.xm.com/research/markets/allNews/reuters/wheat-leaps-to-10month-high-as-russian-harvest-downgraded-again-53847574
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