Chicago soybean and corn futures rose on Thursday after both markets faced pressure in the previous session due to beneficial rains and milder weather conditions in the US Midwest. Wheat futures also climbed for the third consecutive session, although cheap supplies from the Black Sea region are likely to limit further gains.
“Soybean price prospects remain bearish despite some weather-related issues in the Midwest,” commented a trader based in Singapore. “As for wheat, we have cheaper shipments coming from the Black Sea region, but overall, global supplies remain tight.”
As of 0421 GMT, the most active soybean contract on the Chicago Board of Trade (CBOT) was up 0.3% at $9.79-3/4 per bushel, while corn added 0.2% to $3.91-1/2 per bushel. Wheat gained 0.1% to $5.42-1/4 per bushel.
Market participants are concerned that the recent hot and dry weather in the US Midwest could negatively impact expectations for abundant corn and soybean harvests. The worry over the heatwave in the Midwest has supported prices in recent sessions, given the potential damage to the soybean crop during its critical development phase.
However, recent rains have alleviated dryness in many areas, although uncertainty remains about whether they will be sufficient to allow the soybean crop to reach its full potential. In Europe, excessive rains have reduced German and French wheat harvests, although cheap exports from the Black Sea region have continued to sustain global supplies of the grain, undermining US export competitiveness.
Canadian wheat production is expected to increase by more than 4% this year, according to Statistics Canada on Wednesday, which is less than analysts had anticipated at a time when global supply is projected to reach its lowest level in nine years. Total production is expected to reach around 34.4 million metric tons, up from 32.9 million tons in 2023, the agency reported in a study partly based on satellite and agro-climatic data. Analysts surveyed by Reuters had expected 35.125 million tons.
Ukrainian farmers have begun sowing winter grains for the 2025 harvest, planting the first 2,000 hectares of winter wheat and 600 hectares of winter barley, according to data released on Wednesday by the consultancy APK-Inform, citing official figures. Last year, Ukraine began winter grain sowing in early September.
India is considering raising import taxes on vegetable oils to help protect farmers affected by falling oilseed prices, according to two government sources on Wednesday. Commodity funds were net buyers of CBOT wheat and soybean oil futures contracts and sellers of soybean, corn, and soybean meal contracts on Wednesday, some traders reported.