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Wheat falls for 7th session on US weather, global supply concerns

by Reuters
Published: Last Updated on

SINGAPORE: Chicago wheat futures fell for a seventh consecutive session on Thursday, hitting a 21-month low, as forecasts of rains in the US grain belt and plentiful of global supplies weighed on prices. Corn and soybeans lost more ground.

“Better weather in the US and continues concern over the lack of interest in US wheat helped to pressure (prices),” commodities research firm Hightower said in a report.

“New that Canadian producers intend to plant most wheat in 22 years added to the bearish tone.” The most-active wheat contract on the Chicago Board of Trade (CBOT) lost 0.1% to $6.41-1/2 a bushel, as of 0352 GMT, after dropping earlier in the session to its lowest since July 2021 at $6.40 a bushel.

Corn fell 0.1% at 6.00-1/4 a bushel and soybeans slid 0.1% to $14.14-1/2 a bushel. Ample global supplies are likely to cushion the impact from lower Ukrainian exports.

Canadian farmers intend to plant 27 million acres (10.9 million hectares) of wheat, the most in 22 years, a government report said.

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Soft wheat exports from the European Union in the 2022/23 season that started in July had reached 25.02 million tonnes by April 22, up 10% compared with 22.81 million a year earlier, data published by the European Commission showed on Wednesday.

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Wheat has also been pressured by rain forecast in much of the US Plains this week and the next.

The moisture could help drought-affected hard red winter crops, though it may be too late to significantly improve yield prospects.

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Russia’s envoy to the United Nations in Geneva said on Wednesday “no real progress” had been achieved in resolving issues raised by Moscow over the Black Sea grain deal, which is set to expire next month.

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Separately, Ukraine accused Russia of blocking the passage of four grain ships from its Black Sea ports.

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Corn and nearby soybean futures are likely to take direction from US planting progress. Commodity funds were net sellers of CBOT corn, wheat, soybean and soymeal futures contracts on Wednesday, traders said. Funds were net buyers of soyoil futures contracts.

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