Wheat Steadies After Slide; Corn, Soybeans Stay Weak
Chicago wheat futures edged up on Wednesday after hitting a four-week low in the previous session, as northern hemisphere harvests wound down and traders assessed latest import demand.
Corn and soybeans extended losses from Tuesday meanwhile as broadly favourable crop weather in the Midwest and concern over hurricane disruption to U.S. exports kept a lid on prices.
The most active wheat contract on the Chicago Board of Trade (CBOT) was up 0.4% at $7.24-3/4 a bushel as of 1117 GMT. On Tuesday, it had slipped to its lowest since 2 August at $7.07 before finding chart support.
Wheat futures climbed to their highest in more than eight years during August as deteriorating harvest prospects in the northern hemisphere unsettled the market.
"The fundamentals of the northern hemisphere (crops) are generally known," consultancy Agritel said in a note.
"It is mainly technical considerations that are currently dominating." Sovecon said on Tuesday it had cut its forecast for Russia's 2021 wheat crop to 75.4 million tonnes from 76.2 million, with the consultancy citing low spring wheat yields. Statistics Canada on Monday estimated the country's drought-affected wheat crop would fall sharply from last year, but its official projection was higher than the average from a Reuters poll.
On the demand side, the wheat market has been weighing a series of tenders in which importers have shown signs of spreading out purchases in response to high prices.
CBOT corn was down 0.8% at $5.30-1/4 a bushel and soybeans 0.5% lower at $12.85-3/4 a bushel. Hurricane Ida damaged a grain export elevator owned by global grain trader Cargill Inc , and rival shipper CHS Inc warned on Monday its grain facility may lack power for weeks after the storm tore through the busiest U.S. grains port.
Forecasts pointed to moderate weather for Midwest corn and soy crops, including rain in some dry northwestern zones, as attention turns to harvesting that is getting under way.