Chicago wheat futures bounced back on Wednesday as concerns over supplies from top exporters Russia and the United States supported prices.
Soybeans gained ground, although better-than-expected crop conditions and forecasts for rain across the U.S. Midwest kept a lid on prices.
“Some consumers are balking at higher prices for now. And that has few traders worried perhaps the gains have been too much, too soon,” said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia, referring to global wheat prices.
“We are a little skeptical of that, the market is cutting wheat crop estimates. Chances are those consumers will return later and have to bite the bullet on higher prices.”
The most-active wheat contract on the Chicago Board Of Trade (CBOT) gained 0.6% at $7.28-1/2 a bushel by 0350 GMT, after posting a 0.7% fall in the previous session.
Soybeans added 0.4% to $13.25 a bushel while corn eased 0.1% to $5.51-1/2 a bushel.
Wheat is being underpinned by reduced crop prospects in North America and Russia, and steady demand from leading importers, though mounting cases of the Delta coronavirus variant in China and the United States raised doubts over global demand.
The U.S. Department of Agriculture’s (USDA) weekly crop progress report, released after Monday’s market close, showed better-than-anticipated ratings for soybeans.
The USDA rated the overall corn crop 2 points lower than the week prior and below analyst expectations.
Brazilian corn exports are expected to plunge in August to around 3 million tonnes, according to ship line-up data from maritime agency Cargonave and projections by grain exporters association Anec on Tuesday.
Brazil’s second corn crop, badly affected by drought and an ill-timed frost in June, will fall below prior forecasts and hurt exports.
Commodity funds were net sellers of CBOT soybeans, corn, soyoil, soymeal and wheat futures contracts on Tuesday, traders said.
source: Reuters (Reporting by Naveen Thukral; Editing by Ramakrishnan M.)