Chicago | Reuters — Chicago wheat futures climbed on Tuesday after a day-earlier slide, underpinned by renewed fears about Black Sea supplies, traders said.
Soybeans and corn also firmed, supported by slower-than-expected progress in the U.S. harvest.
The most-traded wheat contract on the Chicago Board of Trade (CBOT) gained 63-1/4 cents to $8.93-3/4 a bushel, its biggest daily gain since March 3 (all figures US$). The contract reached $8.96-3/4 during the session, its highest since July 11.
CBOT soybeans firmed 17-1/2 cents at $14.78-3/4 a bushel, while corn lifted 13-3/4 cents to $6.92 a bushel, after reaching $6.93-1/2, its highest since Sept. 13.
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U.S. wheat futures closed higher on Thursday on concerns over the limited availability of supplies for export in Russia, analysts said.
Concerns over Black Sea shipments flared after Russian-installed leaders in occupied areas of four Ukrainian regions set out plans for referendums on joining Russia this week, a move that Ukraine dismissed as a stunt by Russia after recent crushing losses on the battlefield.
“There’s also talk that (Russian) President (Vladimir) Putin may block a renewal of the Ukraine/Russia safe passage deal, set to expire in November,” said Terry Reilly, senior agriculture futures analyst at Futures International.
Corn and soybean futures followed wheat higher, supported by degraded crop conditions and slower-than-expected harvest pace.
The U.S. corn harvest was seven per cent complete as of Sunday, the U.S. Department of Agriculture (USDA) said after Monday’s market close, below an average estimate of 10 per cent in a Reuters poll.
The U.S. soy harvest was three per cent complete, lagging estimates of five per cent. Condition ratings for both soybean and corn crops declined, USDA said.
“We set the stage for lower yields this year,” said Bill Lapp, the founder and president of Advanced Economic Solutions. “Front-end demand is good, and that is helping.”
A slow Chinese import pace and a surge in export sales by Argentina were tempering U.S. soybean export sentiment.
— Reporting for Reuters by Christopher Walljasper; additional reporting by Gus Trompiz in Paris and Enrico Dela Cruz in Manila.
