Friday, May 20

Chicago wheat hits 1-week high on concern over Indian crop


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SINGAPORE/PARIS — Chicago wheat gained more

ground on Thursday, rising 2% with prices underpinned by

expectations that hot and dry weather could hit India’s wheat

exports, while soybeans and corn rose to a lesser extent.

India had stepped up wheat sales recently to fill a supply

gap left by the war in Ukraine.

“India supplied urgently needed wheat to offset the

shortfall in wheat exports from Ukraine due to the war there. If

less wheat now reaches the global market from India, we risk

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seeing supply tighten again, as reflected in yesterday’s price

increase,” Commerzbank said in a note.

The most-active wheat contract on the Chicago Board of Trade

(CBOT) was up 2% at $10.98-1/2 a bushel, its highest in a

week, as of 1100 GMT, building on a 3% gain made in the last

session.

Soybeans added 0.8% to $16.54 a bushel and corn

rose 0.35% to $7.97 a bushel.

India, a major global wheat producer which has seen five

consecutive years of record harvests, has cut its wheat output

forecast to 105 million tonnes from a February estimate of 111.3

tonnes as a sudden sharp rise in temperatures in mid-March cut

crop yields.

However the country is not moving to curb exports, the top

official at the Indian food ministry said on Wednesday.

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Russian wheat export prices fell last week amid higher

domestic supply from farmers willing to free up storage before

the new crop arrives in summer, analysts said on Wednesday.

Russia, one of the world’s largest wheat suppliers,

continues to export despite difficulties with logistics and

payments caused by Western sanctions on Moscow over what Russia

terms its “special military operation” in Ukraine.

UN Secretary-General Antonio Guterres said the problem of

global food security could not be solved without restoring

Ukrainian agricultural production and Russian food and

fertilizer output to the world market.

In Brazil, soybean farmers will raise plantings by 1.5%

nationwide next season, agribusiness consultancy Agrinvest

Commodities told Reuters, in one of the first known projections

for area growth for the new crop.

Prices at 1100 GMT

Last Change Pct

Move

CBOT wheat 1098,50 22,00 2,04

CBOT corn 797,00 2,75 0,35

CBOT soy 1654,00 13,50 0,82

Paris wheat 399,75 9,25 2,37

Paris maize 359,00 4,50 1,27

Paris rape 842,00 6,50 0,78

WTI crude oil 108,02 0,21 0,19

Euro/dlr 1,0595 0,00 -0,24

Most active contracts – Wheat, corn and soy

US cents/bushel, Paris futures in euros per

tonne

(Reporting by Naveen Thukral; Editing by Uttaresh.V, Sherry

Jacob-Phillips and Susan Fenton)



financialpost.com

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