Chicago soybeans futures hit a two-week high while corn hit a one-week high on Wednesday as renewed concerns over hot and dry weather in parts of the U.S. Midwest continued to support the market.
Wheat extended gains on growing doubts that an agreement to reopen maritime grain exports out of Ukraine would be implemented soon.
The most-active corn contract Cv1 on the Chicago Board of Trade (CBOT) rose 0.6% to $/2 a bushel, as of 1141 GMT, after climbing earlier in the session to its highest since July 19 at $/2 bushel.
Soybeans Sv1 rose 1% to $/4 a bushel after hitting $14.02 a bushel, the highest since July 12, and wheat Wv1 gained 1.3% to $8.14 a bushel
The U.S. Department of Agriculture’s weekly condition ratings for corn, soybeans and spring wheat on Monday fell more than most analysts expected, while upcoming forecasts call for more sweltering heat across the U.S. Midwest and Plains.
Strong international wheat demand and uncertainty about Ukrainian grain exports was underpinning wheat prices.
A Turkish official said first Ukraine grain exports were likely this week under a deal signed by Russia and Ukraine on Friday and brokered by Ankara and the United Nations.
However, Russia’s Deputy Foreign Minister said on Wednesday the deal could collapse if obstacles to Russia’s agricultural exports were not promptly removed, Interfax reported.
Traders purchased between 250,000 and 300,000 tonnes of French wheat aimed for Pakistan as part of a tender last week, European traders said on Tuesday, in a further sign that importing countries are turning to western Europe to fill a gap left by missing Black Sea grain.
A severe drought in Pakistan and the impact of higher fertiliser prices have led the country to make large purchases on the world market where supplies have tightened since Russia’s invasion of Ukraine.
China had also made hefty wheat purchases last week. Traders said purchases included around 1 million tonnes of Australian wheat, both for animal feed and flour milling, and about 350,000-400,000 tonnes of French wheat.
On the supply side, U.S. spring wheat yields in southern and east central North Dakota rebounded sharply from last year’s drought-hit crop as ample soil moisture boosted harvest potential in the country’s top-producing state.
Commodity funds were net buyers of CBOT soybeans, wheat, corn, soyoil and soymeal futures contracts on Tuesday, traders said.
