Wheat steadies after dropping nearly 3% as Black Sea supply fears ease
Chicago wheat futures stabilized after a dip caused by profit-taking following recent supply fears from the Black Sea region. Wheat prices rose 0.3%, while corn and soybeans edged slightly lower amid the U.S.’s expected bumper harvests. Despite wheat prices reaching highs on Friday, ample supply from Russia and Ukraine and USDA’s increased global wheat-ending stocks forecast are limiting further price gains.
CANBERRA, Sept 17 (Reuters) – Chicago wheat futures steadied on Tuesday after an easing of fears over supply from the Black Sea region triggered profit-taking in the previous session that pulled prices from near three-month highs.
Corn and soybean futures edged lower as the United States ramps up what are expected to be bumper harvests, cementing expectations of plentiful supply.
FUNDAMENTALS
* The most-active wheat contract on the Chicago Board of Trade (CBOT) was up 0.3% at $5.80 a bushel, as of 0121 GMT, while CBOT corn edged 0.1% lower to $4.10-1/2 a bushel and soybeans dipped 0.1% to $10.04 a bushel.
* Ample supply drove all three contracts to four-year lows in recent weeks but prices have recovered a little ground.
* Wheat reached $5.99 on Friday, its highest since June 19, driven by crop losses in Europe, a weak U.S. dollar and a missile attack on a grain vessel in the Black Sea that Ukraine blamed on Russia.
* But the absence of further escalation between Kyiv and Moscow and confirmation that large amounts of wheat continue to flow from Russian and Ukrainian ports have tempered concerns.
* Prices fell 2.7% on Monday, but are still around 10% higher than three weeks ago.
* Dry weather persists in parts of the southern regions of Russia and Ukraine, complicating planting of winter wheat.
* But the U.S. Department of Agriculture (USDA) last week raised its estimate for global wheat-ending stocks, limiting price gains, analysts said.
Source Link : https://www.livemint.com/news/wheat-steadies-after-dropping-nearly-3-as-black-sea-supply-fears-ease-11726536558151.html
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