Wheat Bounces Off Low, Soybeans And Corn Firmer
Chicago wheat rose on Wednesday after markets dropped to a one-month low on Tuesday, while soybeans and corn also rose.
"Wheat is seeing bargain buying interest today after Tuesday's sharp fall but with no change to the positive crop picture in several key global regions which caused wheat markets to be hit so hard yesterday," Matt Ammermann, commodity risk manager with INTL FCStone, said.
"Soybeans are seeing moderate support from hopes about a U.S./China trade deal. Corn is also seeing moderate support from slow U.S planting."
Chicago Board of Trade most-active wheat was up 0.7% at $4.48-1/2 a bushel at 1128 GMT, after dropping about 3% to its lowest since March 13 on Tuesday.
Corn rose 0.2% to $3.59-3/4 a bushel. Soybeans rose 0.1% to $8.89-1/4 a bushel.
"The coming three-day weekend could bring a little position squaring," brokerage Allendale said.
Traders have been assessing good news about wheat crops in the United States and other leading exporters.
The U.S. Department of Agriculture on Monday rated 60% of the U.S. winter wheat crop in good-to-excellent condition, up from 31% a year ago.
Germany's 2019 wheat harvest will jump 20.6% on the year to 24.44 million tonnes with rising expectations of a recovery after the drought-reduced harvest last year, farm cooperatives forecast.
Consultancy SovEcon raised its forecast of Russia's 2019 wheat crop to 83.4 million tonnes.
The United States and China are still seeking a deal to end a months-long trade war that has cut U.S. soybean exports to China. China would likely lift a ban on U.S. poultry as part of a trade deal.
"We have been in this waiting position for months and prices are no longer reacting sharply to speculation about a settlement," Ammermann said.
"U.S. corn plantings are showing slowness after the recent wetness after heavy snow in some U.S. regions melted. But it is still very early in the planting season and farmers can catch up quickly," he added.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Jana Zimmermann. Click subscribe to sign up to ESM: The European Supermarket Magazine.