SINGAPORE — Chicago wheat futures jumped 2% and touched a one-week high on Friday, building on the previous session’s rally, as easing concerns over a global recession and worries over lower production in Argentina underpinned the market.
Corn and soybeans rose for a third consecutive session.
* The most-active wheat contract on the Chicago Board of Trade (CBOT) rose 2.1% to $8.53-3/4 a bushel, as of 0112 GMT, after climbing to its highest since July 1 at $8.55-1/4 a bushel earlier in the session.
* Corn rose 1.6% to $6.05-1/2 a bushel and soybeans gained 1.3% at $13.83 a bushel.
* While wheat is poised to end the week on a positive note, corn is down for a third week in a row and soybeans are on track for a fourth week of losses.
* The wheat market, which has advanced in recent months on concerns over lower supplies from the Black Sea region, is bracing itself for more production losses.
* Argentina’s wheat-planting area for the current 2022/2023 harvesting season is estimated at 6.2 million hectares (15.3 million acres), down from the 6.3 million hectares previously estimated, the Buenos Aires grains exchange said on Thursday.
* The cut is the fourth made by the exchange since the season began in May, mainly due to unfavorable weather that has prevented many farmers from meeting their original planting targets.
* Forecasts for dry weather in the US Midwest through the middle of July, a critical period for corn development, is supporting prices.
* However, Brazil is expected to harvest a record wheat crop of 9 million tonnes in 2022, with growers sowing the largest area for this crop in the past 32 years, according to a survey released on Thursday by Conab, the country’s food supply and statistics agency.
* On Friday, the US Department of Agriculture is slated to issue weekly US grain export sales data.
* Commodity funds were net buyers of CBOT corn, wheat, soybean, soymeal and soyoil futures contracts on Thursday, traders said.
* US equities rose with Treasury yields on Thursday as investors bet on economic light at the end of the Federal Reserve’s rate hiking tunnel, while oil prices rose on supply concerns and sterling rallied as UK Prime Minister Boris Johnson resigned.
DATA/EVENTS (GMT, June) 1230 US Non-Farm Payrolls 1230 US Unemployment Rate 1230 US Average Earnings YY (Reporting by Naveen Thukral; Editing by Amy Caren Daniel)