Chicago wheat futures were little changed on Wednesday, after earlier hitting a two-week low, as concerns over weather-related damage to the Russian wheat crop eased.
The most active wheat contract on the Chicago Board of Trade (CBOT) was down 0.1% at $6.57-1/2 per bushel as of 1135 GMT, after touching $6.56-3/4, its lowest level since May 20. The wheat market has lost more than 8.5% since reaching a 10-month high on May 28.
“Overseas, markets continue to trade (on) Russian crop production figures while other key growing regions do remarkably well,” said Commonwealth Bank analyst Dennis Voznesenski. He noted that market estimates for Russian wheat production have stabilized between 82-85 million metric tons, following recent frost and dryness, while Ukraine’s production seems largely unaffected.
Soybeans rose 0.25% to $11.82 per bushel, supported by crop losses from flooding in top exporter Brazil. Corn added 0.45% to $4.40-1/2 per bushel.
Despite concerns over the Russian wheat crop, strong international demand was not enough to sustain higher prices. Algeria’s state grains agency OAIC is believed to have purchased between 810,000 and 840,000 tons of milling wheat in a tender on Tuesday, while Egypt bought 470,000 tons.
In Brazil, crop agency Emater estimated soybean losses related to recent floods in the southernmost state of Rio Grande do Sul at 2.71 million tons. The country’s second corn crop is also expected to be lower than previously forecast.
Commodity funds were net sellers of CBOT wheat, soybean, soymeal, soyoil, and corn futures contracts on Tuesday, according to traders.