Chicago wheat futures extended their climb on Wednesday, adding to the previous session’s strong gains. The market responded to expectations of further weather-induced damage to Russian crops, pushing prices higher. As of 0012 GMT, the most-active wheat contract on the Chicago Board of Trade (CBOT) (ZW1!) was up 0.1%, trading at $6.27 a bushel. This follows a 3% rise on Tuesday, driven by reports from Russia’s grain union indicating that frosts have impacted 15% to 30% of winter grains, depending on the region. This percentage is considerably higher than previous estimates from the agriculture ministry.
Wheat gains on U.S. ratings and Egyptian purchase
Picture: Wheat prices on the rise as seen on the VT Markets app.
In addition to the weather concerns in Russia, a surprise drop in weekly U.S. winter and spring wheat condition ratings supported prices. The market also saw increased activity after Egypt, a major wheat buyer, booked 400,000 metric tons of Black Sea-origin wheat in an international tender.
Soybeans flat, Corn dips ahead of USDA report
Picture: Soybeans trading at 11.726 as seen on the VT Markets app.
Meanwhile, soybeans remained flat at $11.78 a bushel, and corn dipped slightly by 0.1% to $4.49-1/4 a bushel. Traders engaged in position-squaring ahead of the U.S. Department of Agriculture’s (USDA) monthly supply-demand reports, expected later in the day. Analysts surveyed by Reuters anticipate the USDA will raise its forecasts for U.S. 2023/24 and 2024/25 soybean ending stocks while lowering its forecasts for corn inventories.
Strong start for U.S. corn and soybean crops
The U.S. corn and soybean crops are off to a robust start this season. The USDA rated 74% of the U.S. corn crop in “good-to-excellent” condition as of late Monday, down one point from last week but still the highest for this time of year since 2020. Soybeans were rated 72% “good-to-excellent” in the USDA’s first ratings of 2024 for the oilseed, aligning with trade expectations.
Also read: Corn and soybean prices on the rise before USDA report
Broader market sees gains in Nasdaq and S&P 500
In broader market news, the Nasdaq and the S&P 500 rose on Tuesday to end at all-time highs. This rally reversed early losses as investors prepared for upcoming inflation data and the U.S. Federal Reserve’s policy meeting.
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