Chicago wheat futures gained ground on Friday after a two-day fall, as the market grappled with weather prospects in leading exporter Russia, where reduced harvest forecasts had pushed prices to a 10-month high earlier this week. Corn and soybean futures also rose after losses this week, amid favorable U.S. crop prospects.
The most-active wheat contract on the Chicago Board of Trade was up 1% at $6.87-1/2 a bushel. The contract had hit a 10-day low on Thursday at $6.73-1/2, retreating from Tuesday’s 10-month peak of $7.20.
Steep cuts to analysts’ forecasts of Russia’s wheat harvest following frosts and dryness have unsettled the market, which has become used to massive production and exports from Russia. Rain expected in the coming days in parts of Russia helped curb the rally, but there was uncertainty as to whether this would bring much relief to the crops.
“Unless significant rains come for Russia, I don’t think prices will come off,” said Commonwealth Bank analyst Dennis Voznesenski. Expectations that India could restart wheat imports are also supporting prices, further tightening global supply.
In other crops, CBOT soybeans were up 1% at $12.22 a bushel after a two-week low, while corn was 0.8% higher at $4.52-1/2 a bushel following a four-week low in the previous session. U.S. farmers have made steady progress in planting corn and soybeans in between showers, and the rain could help the early growth of this year’s crops.
Investors were adjusting positions at the end of the month while also awaiting U.S. inflation data and grain export sales figures.