Wheat falls 1% after four-session rally; key U.S. report in focus
SINGAPORE — Chicago wheat futures snapped a four-session winning streak on Friday, with the market dropping from a two-week high, as investors squared positions ahead of a key U.S. report on global supply and demand.
Corn and soybeans edged lower, although concerns about hot and dry weather conditions in the U.S. Midwest limited losses.
“For the 1-5 day forecast, there are light scattered rains for Nebraska, eastern Iowa and Minnesota, with no rain in the forecast for South Dakota, southwestern Minnesota and western Iowa. There is also no rain for Illinois,” according to a Hightower report.
The most-active wheat contract of the Chicago Board of Trade (CBOT) was down 1% at $8.02-3/4 a bushel, as of 0217 GMT, after climbing to its highest since July 29 in the previous session at $8.21 a bushel.
Corn lost 0.3% to $6.26 a bushel and soybeans gave up 0.4% to $14.43 a bushel.
For the week, all three markets are set for a positive finish after closing lower last week.
Parts of the U.S. Midwest received rain in recent days, but heat in the western regions of the farm belt is expected to continue to hurt crops, including soybeans going through a key growth phase.
Such weather conditions are raising investor uncertainty over crop yield risks ahead of the U.S. Department of Agriculture’s (USDA) monthly World Agricultural Supply and Demand Estimates report, set for Friday.
The government is expected to trim its outlook for U.S. corn production, according to a Reuters survey of analysts.
A severe drought is set to slash the European Union’s corn harvest by 10 million tonnes, dropping it to a 15-year low of 55.4 million tonnes, consultancy Strategie Grains said in its monthly forecast on Thursday.
The forecast marked a 15% cut to its July estimate of 65.4 million tonnes for 2022/23 EU corn production.
However, rains seen in recent weeks in Argentina’s agricultural areas allowed producers to finish planting their 2022/23 wheat crop and recharged moisture levels before the next key phases of crop development, the Buenos Aires grains exchange said on Thursday.
The first grain ship to depart from Ukraine under a U.N.-brokered deal docked in Turkey on Thursday after 11 days at sea, Refinitiv data showed, and the ship’s agent in Turkey said it would continue to Egypt after unloading part of its cargo.
The Razoni set sail from Ukraine’s Odesa port on Aug. 1 under a deal brokered by the United Nations and Turkey between Russia and Ukraine. Eleven other ships have left since then.
Commodity funds were net buyers of CBOT corn, wheat, soybean, soymeal and soyoil futures contracts on Thursday, traders said. (Reporting by Naveen Thukral; Editing by Sherry Jacob-Phillips)
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