Band Naveen Thukral
SINGAPORE, August 5 (Reuters) – Chicago wheat futures climbed for a second straight session on Friday, with strong demand and tight global supplies supporting the market.
Corn rose for a third straight session, while soybeans extended gains on concerns about hot, dry weather in parts of the US Midwest.
“Wheat prices are cheap given the current supply situation and we are seeing strong demand from major importers,” said a Singapore-based trader.
Chicago Board of Trade (CBOT) most active wheat contract Wv1 was up 0.7% at $7.87-3/4 a bushel, as of 0313 GMT. Corn CV1 rose 1% to $6.12 a bushel, while soybeans Sv1 added 0.3% to $14.22-1/4 a bushel.
The wheat market hit its lowest level since early February at $7.52 a bushel on Wednesday.
Over the week, wheat is down 2.5%, corn lost almost 1.3% and soybeans lost more than 3%.
Major challenges remain for exports from the Black Sea region, even as Ukrainian grain begins to flow out of seaports for the first time since February.
Three vessels carrying a total of 58,041 tonnes of corn were allowed to leave Ukrainian ports on Friday as part of a deal to unblock grain exports, the organization organizing the operation said on Thursday.
A first ship carrying Ukrainian grain left Odessa on Monday, arriving in the Bosphorus Strait some 36 hours later as part of a Russia-Ukraine deal, brokered by Turkey and the United Nations, which aims to alleviate a global food crisis resulting from war.
Weekly net export sales of wheat to the United States for the new marketing year during the week ended July 28 were 249,900 tonnes and net export sales of soybeans to the United States were 410,600 tonnes, in line with expectations.
Argentina’s 2022/2023 wheat crop received a much-needed boost last week when rains eased drought conditions affecting key farming areas, the Buenos Aires Stock Exchange reported on Thursday.
Persistent dry conditions in recent months have prompted the stock market to cut its estimate of the country’s wheat planted acreage five times, to 6.1 million hectares (15 million acres) from 6.6 million hectares initially planned for May.
Concerns about dry weather in parts of the US Midwest supported corn and soybeans.
Weather service Maxar said in a report Thursday that its 6-10 outlook pointed to drier weather in the central and northeast Midwest, though rains in the Delta and southeast Midwest were expected to improve weather. moisture for the corn and soybean crops there.
According to weather forecasts, soybeans in major growing regions of the U.S. Midwest will likely face hotter and drier conditions in August, its critical growing month, which could threaten crop yields.
Commodity funds were net buyers of CBOT soybean, wheat, corn, soybean meal and soybean oil futures on Thursday, traders said. COMFUND/CBT
(Reporting by Naveen Thukral; Editing by Sherry Jacob-Phillips and Subhranshu Sahu)
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