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GRAINS-Wheat hovers at near 2-month high amid Black Sea tensions

Posted to Maritime Reporter on September 13, 2024

Chicago wheat futures rose on Friday, hovering near their highest level in two months. Supply concerns increased due to the escalating tensions around the Black Sea region.

The corn market rose for the third session in a row despite the U.S. Department of Agriculture's (USDA's) surprise increase of the US yield forecast. Soybeans also gained.

Chicago Board of Trade's (CBOT) most active wheat contract rose by 0.43% at 0447 GMT to $5.81 per bushel. In the previous session, it reached its highest level since July 7.

The soybean contract rose 0.15%, to $10.12-12 a bushel. Corn gained 0.62%, to $4.08-3/4.

Ukraine accused Russia of using strategic bombers on Thursday to attack a civilian grain ship in a missile strike in Black Sea waters close to NATO member Romania. This escalating tensions in the military alliance between Moscow and Kiev.

Bergman Grains Research stated in a report that "the global wheat outlook" still predicts supplies held by major producers to be near multi-year minimums.

The USDA increased its forecasts for U.S. Corn production and yields, surprising traders that had expected declines after a period of dry weather in the summer.

In a report published each month, it also reduced its projected soybean production. However, the crop will still be the biggest ever.

Bergman Grains Research stated that "the bean report was not as bearish and feared but we are still facing near burdensome bean supplies globally."

The USDA reported that farmers who took part in U.S. subsidy programs reported "prevented" plantings for Sept. 3, 2020 of 2.674 millions acres of corn. This is up from 2.67million acres reported one month earlier, and 0.775 acres of soybeans, which was 0.775 acres last time, as well as 0.390 acres of wheat, which was 0.389 acres last time, according to the USDA.

The Buenos Aires Grain Exchange has said that Argentine wheat crops need more rain in the next few weeks. It noted that the dry weather in western areas had harmed some of the crop as spring in the Southern Hemisphere approaches.

According to EarthDaily Agro, soil moisture in Brazil's Mato Grosso state and Parana state, which are two of the top three soybean producers, is at the lowest level it has been in 30 years. This creates challenging conditions for planting.

Abiove, an oilseed crushing company, said that Brazil's soybean production will be down on last year's record while imports should reach their highest level in more than two decades.

A U.S. forecaster stated that there is a 71% probability of La Nina conditions developing between September and November.

Traders said that commodity funds bought CBOT soybean, soymeal and soyoil futures contracts and sold wheat and corn futures on Thursday.

(source: Reuters)

Tags: North America

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