Chicago wheat futures edged up on Thursday after deep losses the session before, when the market hit contract lows amid ample global supply.
Corn inched higher after dropping to its lowest since late June on Wednesday on forecasts of rains boosting crop prospects across the U.S. Midwest. Soybean prices rose for a second day. The Chicago Board of Trade wheat gained 0.5 percent to $4.21-1/2 a bushel by 0341 GMT after dropping 2.4 percent in the last session to a contract low at $4.17 a bushel.
Corn added 0.2 percent to $3.67-1/4 a bushel while soybeans gained 0.5 percent to $9.30-1/4 a bushel. Wheat prices are struggling in the face of record supplies from the Black Sea region and other key producing countries.
“Fundamentals are bearish for wheat, supplies are really good overall and it is buyers market,” said Phin Ziebell, agribusiness economist, National Australia Bank.
“We had weather related issues and there were low plantings in the U.S. but we have big supplies coming from other parts of the world.”
Leading Russian agriculture consultancies SovEcon and IKAR raised their estimates of Russia’s 2017 wheat crop sharply to record highs on Friday on strengthening yields of the incoming crop.
Egypt, the world’s largest wheat buyer, on Wednesday said it signed deals to buy 295,000 tonnes of Russian wheat and 60,000 tonnes of Ukraine wheat.
No U.S. wheat was offered in the tender, indicating Black Sea cargoes are cheaper than what is being priced in the United States.
Indian farmers harvested a record 98.38 million tonnes of wheat in the crop year to June, up from 97.44 million tonnes estimated in May, data released by the country’s farm ministry showed on Wednesday.
Argentina’s corn planted area for the 2017-18 crop cycle is seen at a record-high 5.4 million hectares (13.3 million acres), up from 5.1 million last season, the Buenos Aires grains exchange said on Wednesday.
Strong export demand is underpinning soybean prices. A delegation of importers from China signed agreements to buy 3.8 million tonnes of U.S. soybeans valued at about $1.56 billion at a ceremony in Omaha, Nebraska, on Tuesday, the U.S. Soybean Export Council said on Wednesday.
(Source – https://in.reuters.com/article/myanmar-rohingya-bangladesh-idINKCN1AX15E)