SINGAPORE: Chicago wheat gained more ground on Tuesday and was trading near its highest since late-February, after a US report showed a decline in winter crop rating, raising concerns over supplies.
Soybeans edged higher, recouping last session’s losses, while corn rose for a second session.
“There was potential crop damaging weather in the US over the weekend, which is supporting prices,” said one trader in Singapore with a company which sells US wheat to millers in Southeast Asia.
“Russian exports are slowing and it will mean higher demand for US wheat.”
The most active wheat contract on the Chicago Board of Trade (CBOT) added 0.6% to $5.72 a bushel, as of 0233 GMT, not far from its highest level since February 27 reached on Monday.
Soybeans rose 0.2% to $10.17 a bushel and corn gained 0.1% at $4.61-1/4 a bushel.
The US Department of Agriculture on Monday rated 48% of the winter wheat in top producer Kansas in “good to excellent” condition, down from 52% the previous week.
With the harvest still about three months away, the US winter wheat crop is breaking dormancy and resuming growth, a time when the need for moisture typically increases.
Forecasts called for mostly dry weather this week in the southern Plains.
Wheat rebounds on lower Russian export forecast; corn, soybeans rise
There could be additional damage to US crops from windstorms and tornadoes that tore through the Midwest and Plains states over the weekend.
Lower shipments from top global wheat exporter Russia have already tightened supplies.
Russia’s March wheat exports are estimated to fall, consultancy Sovecon said on Monday.
Gains in soybeans were limited as data from the National Oilseed Processors Association on Monday showed that US soy processors crushed the smallest volume of the oilseed in five months during February, falling below even the lowest in a range of trade estimates.
Brazil’s soybean harvest for the 2024/25 season reached 70% of the planted area as of last Thursday, agribusiness consultancy AgRural said on Monday, representing the strongest pace for this time of year in at least 14 years.
Commodity funds were net sellers of CBOT corn, soybean and soymeal futures contracts on Monday, traders said. Funds were net buyers of wheat and soyoil futures.
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