Chicago | Reuters—Chicago Board of Trade corn and soybean futures ticked higher in choppy trading on Wednesday, boosted by strength in the financial markets and as traders adjusted positions ahead of a government supply-and-demand report, market analysts said.
CBOT wheat futures extended gains into a third session amid ongoing concerns over weather in Russia and a recent flurry of demand from importers.
The most-active CBOT wheat contract Wv1 settled up 4-1/4 cents at $5.99 a bushel, after touching a high of $6.04-3/4, the highest price since Oct. 2.
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CBOT soybeans Sv1 ended up 4 cents at $10.20-1/4 a bushel. CBOT corn Cv1 rose 1/4-cent to $4.21 a bushel.
Dry weather conditions in South America have bolstered soybean and corn futures recently, as planting is underway. Below-average rainfall, even through the rainy season, has plagued the Amazon and much of South America since last year.
But different weather models are giving conflicting outlooks, with one calling for rainfall in Argentina and another saying things will stay dry.
“Neither of these outlooks is supportive of the crop sizes that some analysts are currently predicting according to sources in South America,” said Karl Setzer, partner at Consus Ag Consulting.
Traders said they are keeping a close eye on weakness in crude oil LCOc1, as sluggish demand and rising U.S. inventories countered the risk of supply disruption from conflict in the Middle East and Hurricane Milton in the U.S. Both corn and soybeans are used in the production of fuel-based products.
And wheat traders said they are awaiting an updated estimate of Russia’s 2024 grain harvest on Thursday from the country’s agriculture ministry to gauge the impact of adverse weather, while also monitoring rain prospects in drought-hit zones where farmers are trying to plant winter wheat for next year.
—Additional reporting for Reuters by Gus Trompiz in Paris and Naveen Thukral in Singapore
