Chicago wheat futures edged higher on Friday to hold above day-earlier contract lows but gains were modest as an expected record Russian harvest kept attention on the size of global supplies.
Corn was little changed as it consolidated around an 11-month low for the new-crop benchmark, curbed by Midwest weather forecasts showing a relatively favourable mix of some rain and moderate temperatures.
Soybeans were also little changed, trading in both directions after a two-day rally supported by export demand.
Wheat for December delivery on the Chicago Board of Trade was up 0.5 percent at $4.42-3/4 a bushel by 1153 GMT, having touched a contract low of $4.38-3/4 on Thursday. “Wheat prices are trying to stabilise above $4.40 on the December 2017 contract,” consultancy Agritel said in a note. “The current level of prices is triggering some bargain buying.”
Higher than expected weekly U.S wheat export figures lent some support to a market that has faced selling by investment funds this week.
However, U.S. export sales were overshadowed by Wednesday’s supply tender for Egypt that generated offers totalling around 1 million tonnes of Russian wheat. The world’s largest wheat importer booked 295,000 tonnes of Russian wheat along with 60,000 tonnes of Ukrainian wheat.
Seasonal supply pressures from big harvests in Russia and elsewhere in the Black Sea export region, along with chart-based selling momentum pushed Paris wheat futures to new lows on Friday.
December wheat on Euronext fell to 160.50 euros ($188.46) a tonne, a new life-of-contract low.
CBOT December corn ticked up 0.1 percent at $3.64-1/2 a bushel, trading close to Wednesday’s low of $3.63-1/4 that was its weakest since September 2016.
Chicago November soybeans inched up 0.1 percent to $9.33-3/4 per bushel.
Weather forecasts looked relatively favourable for Midwest corn and soybean crops, although there was still uncertainty as to whether showers would reach all of the areas affected by very dry conditions earlier this summer.
“Grain prices will trade largely sideways in the coming weeks as wheat harvests are nearly finished and weather conditions remain favourable for upcoming northern hemisphere corn and soybean harvests,” BMI Research analysts said in a note.
Soybeans have been supported this week by renewed export demand, suggesting a window for U.S. exports despite record harvest supplies in rival exporter Brazil.
Source: ReutersPrevious Next