Wheat rises over 4% on global supply issues - CBOT
Corn gained 1.7%, soybeans up nearly 1%
6 June 2022
3 minute read
Chicago wheat futures rose more than 4% on Monday, rising for a second session in three as worries over supplies from the Black Sea region and strong demand underpinned prices, reported Reuters.
Corn gained 1.7% while soybeans were up nearly 1%.
The most-active wheat contract on the Chicago Board of Trade (CBOT) was up 4.6% at $10.87-3/4 a bushel, as of 0031 GMT. Corn climbed 1.7% to $7.39 a bushel and soybeans added 0.9% to $17.12-1/4 a bushel.
Global wheat supplies have tightened after Russia's invasion of Ukraine earlier this year curbed supplies from one of the top exporting regions of the world. Adverse weather in the United States has added to supply woes.
Resumption of Ukrainian sea trade is seen as crucial for grain markets, particularly after India last month decided to ban most wheat exports.
Ukraine was the world's fourth-largest corn exporter and the No. 6 wheat exporter before Russia's invasion, according to International Grains Council data.
Russian President Vladimir Putin on Friday denied Moscow was preventing Ukrainian ports from exporting grains and said the best solution would be to ship it through Belarus, as long as sanctions on that country were lifted.
UN aid chief Martin Griffiths "had frank and constructive discussions" with Russian officials in Moscow on facilitating exports of Ukraine grain from Black Sea ports, a U.N. spokesman said on Friday.
Sovecon, one of the leading agriculture consultancies in Moscow, said on Friday that it had raised its forecast for Russia's wheat exports in the new July-June marketing season by 1.3 million tonnes to a record high of 42.3 million tonnes.
However, the condition of France's soft wheat crop has declined for a fifth consecutive week, data from farm office FranceAgriMer showed on Friday, as dryness persisted in the European Union's biggest grain producer.
An estimated 67% of the soft wheat crop was in good or excellent condition in the week to 30 May, down from 69% the previous week, FranceAgriMer said in a cereal report.
India has no plans to curb food exports for now, Piyush Goyal, the Minister for Commerce and Industry, Consumer Affairs and Food and Public Distribution said on Friday, weeks after New Delhi banned private wheat exports.
The Indian government's decision to ban wheat exports and restrict sugar exports had raised doubts about some curbs on overseas sales of rice as well.
Large speculators cut their net long positions in CBOT corn futures in the week ended 31 May, regulatory data released on Friday showed.
The Commodity Futures Trading Commission's weekly commitments of traders report also showed that noncommercial traders, a category that includes hedge funds, increased their net short position in CBOT wheat and raised their net long position in soybeans.
MARKET NEWS
Global equity markets fell as US Treasury yields reached two-week highs on Friday after data showed the American economy generated a greater-than-expected number of jobs in May, signalling the Federal Reserve will likely continue raising interest rates in its effort to curb inflation.
Source: Reuters
