Wheat steadies after one-year low, soybeans hold firm

Chicago wheat climbed on technical buying Wednesday after sliding to 13-month lows earlier in the week, as global supplies weigh on U.S. markets.

Soybean futures inched higher, underpinned by export demand optimism and dry conditions in top exporter Argentina.

Corn inched higher, supported by wheat and soy despitefrom weaker crude oil LCOc1.

The most-active wheat contract Wv1 on the Chicago Board of Trade (CBOT) climbed 25 cents to $7.54 a bushel by 11:25 a.m. (1725 GMT).

CBOT corn Cv1 last added 4-3/4 cents to $6.42 a bushel, while CBOT soybeans Sv1 gained 11 cents to $14.7-1/2 a bushel.

“After hitting a one year low, I think some traders saw it as a buying opportunity,” said Terry Reilly, senior agriculture futures analyst Futures International.

Export demand has been strong this week, though U.S. wheat remains expensive compared to Black Sea supplies.

Mounting Russian exportscontinue to pressure wheat prices. Shipments from October through December are expected to reach 12.7 million tonnes, up 33% from the same period in 2021, according to agriculture consultancy Sovecon.

Forecasts for a record crop in Australia have also eased global supply concerns and added weight to U.S. wheat markets.

A weaker U.S. Dollar should make U.S. commodities more affordable on theglobal market but is still too strong to entice buyers, said Ed Duggan, Senior Risk Management Specialist at Top Third Ag Marketing.

“The problem with the wheat is, we’ve become such a bit player on the export market, you’ve got the dollar at $105, which is a low for six months, but it’s still a dollar at $105,” he said.

Soybeans remain supported by optimism that easing COVID-19 lockdown measures in China will fuel further exports.
Source: Reuters (Reporting by Christopher WalljasperAdditional reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore; editing by Diane Craft)