Chicago | Reuters – Chicago Board of Trade wheat futures closed nearly flat on Friday but rose seven per cent for the week as concerns grew over crop losses in Russia and other exporting countries.
Corn futures also finished little changed, while soybeans rose slightly.
CBOT wheat this week reached a 10-month high as analysts reduced production estimates for Russia, the biggest wheat exporter, after crop areas suffered from dryness and frosts. High prices are expected to drive livestock producers globally to use more corn as feed, instead of wheat, analysts said.
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“The rally in wheat appears to be running out of steam as we think much of the Russian crop production loss could be factored into the market,” said Terry Reilly, senior agricultural strategist for Marex. “Global wheat demand destruction may keep any rallies in check.”
CBOT July wheat futures eased 3/4 cent to settle at $6.97-1/4 per bushel.
In Europe, the condition of France’s soft wheat declined slightly last week to remain at a four-year low, farm office FranceAgriMer said. Germany’s wheat crop will shrink by 5.6 per cent this year to 20.31 million metric tons, according to the country’s association of farm cooperatives.
Traders also assessed U.S. corn and soybean plantings after earlier rain delays. The U.S. Department of Agriculture is slated to issue a weekly update on planting progress on Tuesday, one day later than normal due to Memorial Day on Monday.
“The wet forecast in the short term and drier forecast further out keep the trade guessing what progress the U.S. will show,” broker StoneX said.
CBOT July corn futures rose 3/4 cent to finish at $4.64-3/4 per bushel, up about 2.7 per cent for the week. CBOT July soybeans closed 8-3/4 cents higher at $12.48 per bushel, up about 1.6 per cent for the week.
Traders adjusted positions before the three-day weekend.
“Without any great weather concerns in the U.S., it will be hard to rally corn much,” said Tomm Pfitzenmaier, analyst for Summit Commodity Brokerage.
– Additional reporting by Naveen Thukral in Singapore and Sybille de La Hamaide in Paris
