Chicago wheat futures rose Wednesday, after France's agriculture ministry downgraded its crop once again. However, large exports of Black Sea wheat at a low price continued to suppress a rally which drove prices to their three-month highs the previous week.

Corn futures also rose as traders watched heat and drought in Brazil, the top soybean producer, which threaten soybean seeding.

As of 0715 GMT the most active wheat contract on Chicago Board of Trade was up 0.4% to $5.78 per bushel. However, this is still below Friday's record high of $5.99.

The market is now processing the European problems of quality, and the dryness in Black Sea Region has begun to weigh, said Vitor Pistoia from Rabobank Sydney.

"The supply next year may not be as large." "We have low stock," he added, but added the prices would not necessarily increase.

We need to have more supply problems in order to raise the price.

The French agriculture ministry lowered their estimate for 2024's wheat harvest again on Tuesday, while the Ukrainian agriculture ministry reported that winter wheat planting was slow due to parched fields.

The consultancy Sovecon has raised its estimate of Russia's wheat crop for 2024 to 82.9 millions metric tons.

Other crops saw CBOT corn rise 0.4% to $4.14-1/4 per bushel, and soybeans rose 1.3% to $10.19 per bushel.

The rapid advance of the U.S. corn and soy harvests is putting pressure on the prices. However, the drought in Brazil could undermine the government's forecasts for higher production this season.

In recent weeks, abundant supply has pushed CBOT corn, wheat and soybeans down to their lowest levels in four years. Since then, speculators have cut their bets but are still bearish.

(source: Reuters)