Chicago wheat prices inched higher on Friday, benefiting from short-covering activities after recent declines. However, the market is poised to record a second consecutive week of losses due to lackluster demand and abundant global supplies. Meanwhile, corn is on track for a third week of gains, and soybeans are set for a second week of increases as traders position themselves ahead of the USDA’s upcoming supply/demand report.
In trading on Friday, the most-active wheat contract on the Chicago Board of Trade (CBOT) saw a modest 0.1% increase to $5.29-1/4 a bushel. Conversely, corn prices dipped by 0.3% to $4.36-3/4 a bushel, while soybeans rose by 0.3% to $11.70-1/4 a bushel.
Throughout the week, wheat has experienced a decline of approximately 5%, while corn has seen an increase of nearly 3% and soybeans have risen by 1.5%.
Recent developments include China’s cancellation of purchases of 130,000 metric tons of U.S. soft red winter wheat, as reported by the USDA. Additionally, Egypt’s General Authority for Supply Commodities called off an international tender for wheat with a deadline of March 7.
In Argentina, the Buenos Aires grains exchange reported that eight out of ten hectares of soybean fields are in “normal to excellent” condition following recent rainfall in the northern regions of the country. However, soybean imports for China, a major oilseed buyer, have declined to a five-year low in the first two months of the year due to poor crushing margins and reduced ship arrivals during the Lunar New Year holidays.
Market participants noted that commodity funds were net buyers of CBOT corn, soybean, soyoil, soymeal, and wheat futures contracts on Thursday.