HAMBURG — Chicago wheat firmed on Monday, again underpinned by concerns about declining world supplies following nine-year highs reached last week.
Corn and soybeans drifted as dealers adjusted positions ahead of key crop and inventory forecasts from the US Department of Agriculture (USDA).
Chicago Board of Trade most-active wheat was up 0.4% at $7.70-1/4 a bushel at 1158 GMT.
Soybeans fell 0.06% to $12.04-3/4 a bushel, after earlier on Monday dropping to $12.02 a bushel, the weakest since Oct. 15. Corn rose 0.1% to $5.53-3/4 a bushel.
“Wheat is seeing technical support after hitting its highest in around nine years last week on concerns about tight global supplies,” said Matt Ammermann, StoneX commodity risk manager.
“The firm trendline in wheat is holding above $7.70, and the question now being posed about whether it will move above $7.80.”
“Following poor harvests in several regions there is also concern about rain hitting the Australian wheat crop at a time Australian supplies will be important on the world market.”
“But wheat needs more signs of new demand, with the market looking quiet today after large tenders by Saudi Arabia and Egypt last week.”
In its world supply/demand report on Tuesday, the USDA is expected to raise US harvest forecasts for corn and soybeans, and to cut its estimate of world wheat inventories.
“Soybeans and corn are drifting as market participants take positions ahead of the USDA’s estimates tomorrow,” Ammermann said.
“Soybeans are also being weakened by slack Chinese demand for US supplies. There is market talk that China bought Brazilian soybeans for December shipment late last week, bad news after the US export window was already reduced by Hurricane Ida.”
China’s soybean imports in October fell 41.2% from a year earlier, hitting the lowest level since March 2020. (Reporting by Michael Hogan in Hamburg; Additional reporting by Naveen Thukral in Singapore; Editing by Jan Harvey)