Chicago | Reuters—Chicago wheat and corn gained strength on Wednesday as the market monitored a hot, dry spell forecast in parts of North America, but gains were capped by sizeable global supplies.
The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 ended up 4-1/4 cents at $5.47 per bushel.
CBOT corn Cv1 rose 3/4 cent to $4.18 a bushel, recovering after nearing its lowest point since 2020, as investors anticipated ample supply and amassed large net short positions in recent weeks.
“We’re seeing some light short covering continue,” said Karl Setzer, partner at Consus Ag Consulting, and slight premiums based on hot weather forecasts.
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U.S. grains: Corn rebounds from contract lows on short covering, bargain buying
Bargain buying and short covering lifted U.S. corn futures on Monday after the market slid to contract lows on expectations for strong U.S. output, traders said.
CBOT soybeans Sv1 dropped 11-1/2 cents to $10.64 a bushel after hitting a two-week high on Tuesday, as doubts about demand returned.
Gains in wheat were capped by the projections from scouts on the first day of an annual U.S. crop tour that spring wheat in southern and east-central North Dakota will produce the highest yields in tour records since 1994.
Consultancy Sovecon also slightly raised its forecast for Russia’s 2024 wheat crop, illustrating favorable harvest prospects in the world’s biggest wheat exporter.
But traders are seeking a clearer picture of the rain-hit harvest in western Europe, including expectations of a poor crop in France.
Soybeans lagged on weaker demand. Soy had gained in previous sessions on bets that Republican presidential candidate Donald Trump might not win the U.S. election and ramp up trade tensions with top importer China.
Concerns over Chinese demand, which have weighed on wider commodity markets, and competition from cheaper South American and Black Sea suppliers continued to cool export sentiment.
“We haven’t had flash sales in a bit,” said Setzer.
—Additional reporting for Reuters by Gus Trompiz in Paris and Peter Hobson in Canberra
