Chicago | Reuters—Chicago Board of Trade wheat futures continued their steady climb on Wednesday, as dry weather raised concerns in key growing regions and Russian attacks in the Black Sea area threatened to disrupt supply chains.
Soybean futures eased as traders assessed prospects for U.S. corn and soy planting weather this week. Rain and colder temperatures in the Midwest could hinder planting progress later this week, analysts said.
The U.S. Department of Agriculture (USDA) reported late on Monday that eight per cent of the U.S. soybean crop was planted as of Sunday, ahead of expectations, according to analysts polled by Reuters, who predicted seven per cent of the crop planted.
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Nearby corn futures eased, after following wheat prices higher earlier in the week, in a choppy trading session.
Much of the volatility in the grains market came amid a flurry of technical short-covering, analysts said, as fund managers adjusted their positions ahead of the first notice day on May contracts next week.
CBOT’s most-active July wheat contract WN24 settled up 10-1/4 cents at $6.13 a bushel, while the most-active contract on a continuous chart Wv1 touched the highest price since Jan. 25.
Most-active July corn futures CN24 closed down 4 cents at $4.48-1/2 a bushel, and July soybeans SN24 settled down 1/2-cent at $11.81-1/2 a bushel.
Analysts said wheat’s ongoing rally could be attributed in part to the dry weather that continues to affect wheat producing regions of Russia and the U.S. Southern Plains.
In addition, attacks on Ukraine’s Black Sea ports, which affected the country’s grain infrastructure, rattled the markets, said Jim McCormick, cofounder of AgMarket.net.
McCormick noted that shifting wheat demand in India was a concern on the horizon, with the country reporting its inventories had hit their lowest point in 16 years and the possibility growing that it might import wheat for the first time since 2017.
“If they feel like their prices are going to go up, then they may come into the international market to essentially drive the domestic prices down,” said McCormick.
—Additional reporting for Reuters by Michael Hogan in Hamburg and Naveen Thukral in Singapore
