Wheat Hits 1-Month Peak On Supply Concerns As Production Outlook Dips
US wheat futures edged higher on Thursday as the prospect of a hit to global supplies due to lowered production estimates in countries from France to Argentina pushed prices to a one-month high.
Corn edged higher, rebounding from losses in the previous session, while soybeans also firmed.
The most-active wheat futures on the Chicago Board Of Trade rose 0.5% to $5.19 a bushel, which is the highest since 5 June. Wheat closed 4.3% higher in the previous session.
Analysts said concerns over supplies in major exporters was driving gains.
"There are further rumblings from Argentina that the government is looking to, somehow, stick its oar deep into the wheat. Argentina's growers might cut their wheat planting substantially as a result," said Tobin Gorey, director of agricultural strategy, Commonwealth Bank of Australia.
"Argentina producing less wheat would be good news for US wheat exports."
Argentina's government has proposed linking the interest rate of bonds issued in the country's debt restructuring to the country's agricultural exports, a proposal that the country's farmers have rejected.
Also on Wednesday, Argentina's Rosario Grain Exchange lowered its 2020/21 harvest estimate to a range of 18-19 million tonnes from 21-22 million previously.
In France, farm office FranceAgriMer forecast 2020/21 soft wheat shipments outside the European Union would fall to 7.75 million tonnes, down 43% from 2019/20 and the lowest in four years.
Concerns over global wheat supplies could be further stoked when the US Department of Agriculture issues its monthly report on Friday.
The USDA is expected to trim its estimate for the country's harvest to 1.848 billion bushels from 1.877 in June, according to a Reuters poll of analysts.
The most-active soybean futures were up 0.1% at $8.99 a bushel. Soybeans closed 0.6% lower on Wednesday.
The most-active corn futures inched up 0.1% to$3.54-1/4 a bushel, having finished 0.5% lower in the previous session.