Chicago wheat, corn, and soybean futures showed a slight rise early on Thursday, stabilising after recent losses. This shift comes as the market digests favourable U.S. crop conditions, hinting at a balanced outlook for these key agricultural commodities.
See: Wheat shows slight recovery, trading at 5.457 on the VT Markets app.
The most-active wheat contract on the Chicago Board of Trade (CBOT) increased by 0.31%, reaching $5.63-1/4 per bushel at 0245 GMT.
This follows a 1.83% decline on Wednesday, marking its lowest since April 19. The market is responding to improved harvest prospects and cheaper prices in top exporter Russia, affecting global wheat sentiment.
CBOT corn futures rose by 0.49%, settling at $4.09-1/4 per bushel. This comes after hitting a two-week low in the previous session.
The anticipation of the U.S. Department of Agriculture (USDA) increasing its ending stocks and production estimates for U.S. corn in the upcoming monthly supply/demand report adds a cautious optimism to the market.
You might be interested: Wheat and soybean prices stabilise with improved crop conditions
Picture: Soybeans on the rise, trading at 11.182 on the VT Markets app.
Soybeans edged up by 0.14%, trading at $10.68-1/2 per bushel, after falling to their lowest point since November 2020. The confirmation of China’s first purchase of U.S. soybeans for the 2024/25 marketing year, amounting to 132,000 metric tons, provides a slight bullish sentiment.
Brazil’s July soybean exports at 10.29 million tons, while corn exports are expected to reach 4.09 million tons. Both figures surpass previous forecasts, indicating strong international demand. Egypt’s decision to lower its wheat self-sufficiency target to 51% from 65% reflects ongoing strategic adjustments to diversify agricultural exports despite plans to increase farmed areas.
The European Union farming association Copa-Cogeca anticipates a more than 6% decline in EU common wheat production this year, driven by reductions in major producers like France, although Spain’s recovery offers some relief.
Euronext wheat futures dipped to a two-week low on Wednesday due to improving harvest prospects and competitive pricing from Russia, influencing market sentiment. South Korean flour mills have secured 90,000 tons of milling wheat from the United States and Canada, highlighting continued demand in international markets.
A global equities gauge reached record levels on Wednesday, while U.S. Treasury yields edged lower. Comments from Federal Reserve Chair Jerome Powell suggesting possible interest rate cuts have fueled investor optimism. Meanwhile, market participants await key U.S. inflation data, which will further inform trading strategies.
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