SINGAPORE — Chicago wheat futures rose for the first time in three sessions on Friday on concerns over adverse weather conditions in key exporting countries, although gains were limited following an extension of a Black Sea export deal.
Corn rose for a second session while soybeans gained ground.
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“As expected, the Black Sea deal has been extended, which is going to add pressure on prices but we have dryness in U.S. Plains and Argentina,” said one Singapore-based grains trader. “Supplies are set to remain tight in the coming months.”
The most-active wheat contract on the Chicago Board of Trade (CBOT) was up 0.7% at $8.12 a bushel, as of 0313 GMT, and the market has lost 0.2% this week.
Corn rose 0.5% to $6.70-1/2 a bushel and soybeans gained 0.3% at $14.20-1/2 a bushel. For the week, corn is up 1.9%, while soybeans have lost around 2%.
The deal aimed at easing global food shortages by helping Ukraine export its agricultural products from Black Sea ports was extended for four months on Thursday, though Russia said its own demands were yet to be fully addressed.
The agreement, initially reached in July, created a protected transit corridor and was designed to alleviate shortages by allowing exports to resume from three ports in Ukraine, a major producer of grains and oilseeds.
Concerns over adverse weather in key exporting countries continued to support prices.
Argentina farmers could reduce the area they plant with soy if more rain does not bring relief to drought-plagued farmlands soon, the Buenos Aires grains exchange said Thursday as it forecast moderate showers in parts of the country’s farm belt.
A prolonged drought has forced farmers to delay planting soy, which is only 12% complete, versus 29% at the same date last year. The current crop’s total planted area is projected at 16.7 million hectares (41.3 million acres), the exchange said.
The International Grains Council trimmed its forecast for 2022/23 global wheat production by one million tonnes, to 791 million tonnes, and maintained its 2022/23 world corn crop outlook at 1.166 billion tonnes.
Commodity funds were net sellers of CBOT soybean, wheat, soyoil and soymeal futures contracts on Thursday, and were net even in corn futures, traders said. (Reporting by Naveen Thukral; Editing by Sherry Jacob-Phillips)