Chicago wheat futures rose to a nine-month high on Friday, driven by concerns over frost damage to crops in top exporter Russia. Corn and soybean prices also edged higher amid challenging weather conditions in major growing regions.
According to the Russian agriculture ministry, wheat regions hit by frosts this month will need to be re-sown, indicating significant frost damage is likely to have occurred. Commerzbank stated that the general weather situation for wheat, corn, and soybeans remains challenging.
The most-active wheat contract on the Chicago Board of Trade climbed 2.3% to $6.52-1/4 per bushel, after reaching a nine-month peak of $6.60. Dealers also cited concerns about wheat crops in the European Union, where 64% of French soft wheat was rated in good or excellent condition, down from 94% a year ago.
Corn futures gained 0.7% to $4.59-1/2 per bushel, while soybeans rose 0.3% to $12.12 per bushel. The slow progress of soy and corn harvesting in Brazil’s Rio Grande do Sul state, due to ongoing floods, is expected to cause heavy losses for local farmers. Estimates suggest the floods could lead to a 1.32 million metric ton loss in soybean production.
In Argentina, the Buenos Aires grain exchange warned it may cut its forecast for the 2023/24 soybean crop, currently at 51 million metric tons, as warm weather and lack of rain in the country’s north have resulted in lower-than-expected yields. Additionally, a nationwide strike has halted operations at Argentine grains ports and soybean crushing plants around the major Rosario hub.
These weather-related concerns in major crop-producing regions have contributed to the rise in wheat, corn, and soybean prices, reflecting the tightening supply conditions in the global agricultural markets.