Wheat poised for biggest weekly rise in 2 years on supply fears
Chicago wheat futures surged this week, driven by adverse weather in Russia and the U.S., marking the largest weekly gain in two years. Corn also rose significantly, set for its biggest weekly increase in 11 months. Soybeans remained steady, eyeing their first weekly rise in over a month. Dryness in key wheat-producing regions fueled concerns, prompting investors to cover short positions. The European Commission lowered its wheat crop forecast, while South African maize harvests are expected to decline.
Wheat up more than 9% this week as adverse weather drives gains
Corn, soybeans up this week; market eyes U.S. planting weather
Adds quote in paragraph 3-4, updates prices
By Naveen Thukral
SINGAPORE, April 26 (Reuters) -Chicago wheat futures eased on Friday but the market wason track for their biggest weekly gain in two years, as dry weather in parts of Russia and the United States threatened to curb supplies.
Corn firmed, with the market set for its biggest weekly rise in 11 months. Soybeans were little changed, on track for the first weekly rise in more than a month.
“For southern Russia and eastern Ukraine, recent dryness is becoming more of a concern,” according to a Rabobank report.
“Rainfall has been notably below normal levels over the past month, and the one-week forecast shows limited precipitation. Should dryness continue in May, we could begin to see significant estimate downgrades.”
The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 fell 0.2% to $6.19-1/4 a bushel, as of 0317 GMT, corn Cv1 added 0.2% to $4.52-3/4 a bushel and soybeans Sv1 flat at $11.79-3/4 a bushel.
Dry weather in some Russian and U.S. wheat producing regions kept attention focused on spring weather risks to northern hemisphere crops, encouraging investors to cover some of their large short positions in wheat.
Forecasts showed limited rain relief in southern Russia until at least early May, though parts of the U.S. Plains could get moisture this week.
For week, wheat is up 9.3%, the biggest rise since March 2022, corn has added 4.4%, the most since May last year and soybeans have gained 1.2%.
The European Commission on Thursday cut its forecast for the European Union’s main wheat crop in 2024/25 to a new four-low as it projected a bigger fall in area than previously expected.
In supply and demand data, the Commission pegged usable production of common wheat, or soft wheat, at 120.2 million metric tons, down from 120.8 million in its initial outlook last month and still the lowest since 2020.
For soybeans, dry and hot weather throughout the season in northern Argentina may lead the Buenos Aires grains exchange to reduce its estimate for the country’s 2023/24 soybean crop, currently sitting at 51 million metric tons, the exchange said on Thursday.
South African farmers are expected to harvest 18.5% less maize in the 2023/2024 season compared with the previous one, the government’s Crop Estimates Committee (CEC) said on Thursday.
Commodity funds were net buyers of CBOT wheat, corn and soyoil futures contracts on Thursday, traders said. Funds were net sellers of soybean and soymeal futures, traders said. COMFUND/CBT
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