In the grain markets, Chicago wheat saw a modest decline for the third consecutive session on Wednesday amid expectations of ample supplies later in the year from the northern hemisphere. Conversely, soybeans rebounded after a two-day slump, while corn prices also strengthened.
A trader based in Singapore noted that improved wheat crops in Russia and the U.S. have bolstered supply prospects, leading to subdued demand from millers. The most-active wheat contract on the Chicago Board of Trade (CBOT) dipped slightly to $5.57-1/4 per bushel, following a decline on Tuesday.
Soybeans rose by 0.5% to $11.80 per bushel, and corn gained 0.4% to $4.32-3/4 per bushel. Commodity analysis firm Argus revised its forecast for Russian wheat production upward to 92.1 million metric tons for the year, citing improved winter wheat outlook despite challenges in spring wheat planting.
USDA data revealed favorable conditions for U.S. winter wheat, easing concerns over past dry weather impacts. Forecasts of increased rainfall in the U.S. Plains and drier conditions in the Delta region have alleviated weather-related worries for crops.
Traders are adjusting positions ahead of key reports and data releases, including U.S. inflation figures and upcoming reports from USDA and Brazilian agency Conab. Commodity funds were net sellers of various grain futures contracts on Tuesday.