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Supply Chain

US Wheat Eases On Harvest Pressure; Corn Mostly Firm, Soy Mixed

US wheat futures were mostly lower on Wednesday as the harvest of winter wheat advanced, with dry conditions expected to speed progress in the Plains, traders said.

Corn futures were mixed, with strong domestic cash markets supporting nearby July futures CN2 on the Chicago Board of Trade.

Soybean futures were mostly lower.

As of 1:13 p.m. CDT (1308 GMT), CBOT July wheat WN2 was down 1 cent at $10.49-1/4 per bushel.

July corn CN2 was up 6 cents at $7.74-1/4 a bushel and July soybeans SN2 were down 4-1/4 cents at $16.94-1/4 in choppy trade.

Weather Impact

CBOT soft red winter WN2 and K.C. hard red winter wheat futures declined on seasonal pressure, with the K.C. July contract KWN2 dipping to $11.25-3/4, its lowest since 3 June.

Weather forecasts in the southern Plains hard red winter wheat belt called for "favourably dry" conditions, the Commodity Weather Group said.

"We are at harvest for winter wheat, and that's going to keep it under some pressure. Because it is a small harvest, (futures prices) will probably bottom early in the harvest period, but we've still got to get a little farther," said Jack Scoville, analyst with the Price Futures Group in Chicago.

Corn and soy traders were monitoring a hot spell in the Midwest, where the planting of both crops is nearly complete after a slow start due to cool, wet weather in April and May.

"Initially this hot and dry weather is going to be good for the crops; we needed it. But if it goes much longer, it will turn from good to bad in a hurry," Scoville said.

Supply Disruption 

Meanwhile, fears of an economic downturn, fuelled by surging inflation and lockdowns in China to counter renewed COVID-19 outbreaks, have taken attention away from supply disruption in grains caused by Russia's invasion of Ukraine.

"Global trends in inflation and growth are increasingly a concern, and worryingly, a recessionary base case is where many investors appear to be heading," said Stephen Innes, managing partner at SPI Asset Management.

News by Reuters, edited by Donna Ahern, Checkout. For more Supply Chain stories, click here. Click subscribe to sign up for the Checkout print edition.

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