Wheat Rebounds On Supply Woes, Corn At Two-Week High

By Steve Wynne-Jones
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Wheat Rebounds On Supply Woes, Corn At Two-Week High

Chicago wheat futures rose on Wednesday, recouping some of last session's deep losses on expectations of lower production in key exporting countries.

Corn climbed to a two-week high as excessive rains threaten to reduce yields of the U.S. crop.

The most-active wheat contract on the Chicago Board of Trade gained 0.6 percent to $5.34-3/4 a bushel by 0231 GMT. It closed down 2.6 percent on Tuesday, when prices touched their lowest since Aug. 28 at $5.19-1/2 a bushel.

Corn was up 0.3 percent at $3.69-1/2 a bushel after climbing to its highest since Aug. 22 at $3.69-3/4 a bushel and soybeans added 0.5 percent to $8.48-1/4 a bushel.

No Export Duty

Russia's agriculture ministry does not see a need to impose export duty or curb grain exports in any other way, it said in a statement after a meeting with exporters on Monday.


But Russia's crop has suffered from dry weather this year.

"We don't see a big downside in prices as the Russian crop is much smaller," said Phin Ziebell, an agribusiness economist with National Australia Bank.

"The trend in wheat prices is upside. We are seeing yield declines in several exporting countries."

For corn, heavy rains soaked the western U.S. Midwest this weekend and more showers were expected as remnants of Tropical Storm Gordon move into the Corn Belt this week, slowing the advancing maturity of crops, meteorologists said.


Storms brought 2 to 5 inches (5 to 13 cm) of rain this past weekend from Nebraska to Wisconsin and northern Illinois, with some local amounts reaching 8 inches (20 cm), World Weather Inc meteorologist Andy Karst said.

In the soybean market, the outlook is bearish amid the ongoing U.S.-China trade spat.

China will almost entirely replace its soybean imports from the United States with Brazilian beans and other origins in the upcoming season, but may run out of the oilseed in early 2019, an executive with a top crusher said on Tuesday.

Imports from the United States will plunge further in the 2018/19 season starting this month to just 700,000 tonnes, said Guo Yanchao, deputy chairman of Jiusan Group.


Commodity funds were net buyers of CBOT corn, soybean and soymeal futures contracts on Tuesday. They were net sellers of wheat and even in soyoil.

News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.

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