Chicago wheat futures rose on Thursday, driven by concerns over the impact of frosts in Russia, the world’s top wheat exporter. Three of Russia’s key grain-growing areas have declared a state of emergency due to severe damage to crops from May frosts, which is expected to reduce this year’s harvest.
The most-active wheat contract on the Chicago Board of Trade (CBOT) gained 1.7% to $6.45 a bushel as of 1011 GMT. Corn and soybeans also edged up, with corn rising 0.55% to $4.61 a bushel and soybeans gaining 0.35% to $12.32 a bushel.
Dealers said the impact of the frosts in Russia will be closely monitored, as the crops are entering a critical period for development. Russia is the world’s largest wheat exporter, and any reduction in its production could tighten global supplies.
In other news, Japan’s Ministry of Agriculture Forestry and Fisheries (MAFF) bought 114,077 metric tons of food-quality wheat from the United States, Canada, and Australia in a regular tender that closed on Thursday.
Meanwhile, Argentina’s Rosario grains exchange said the leafhopper plague has ruined around 20% of the corn crop this season, and it has cut its harvest estimate for 2023/24 to 47.5 million metric tons from 50 million tons. The exchange also maintained its estimate for the current soybean harvest at 50.0 million tons, though it cautioned that harvesting has been delayed by rains and high humidity.
China’s soybean imports in April jumped 18% from a year earlier to 8.57 million metric tons, the highest on record for April, as buyers took advantage of cheap and plentiful Brazilian beans.
Analysts expect the upcoming USDA report on Friday to show adequate supply, which has limited the rebound in prices. However, the bullish developments in Russia and Argentina have sparked some short-covering that has driven the gains in the markets.