Wheat unmoved after closing higher, supply woes support prices
Chicago wheat was little changed on Thursday after snapping a four-day losing streak in the last session, as dwindling supplies of high-quality grains underpinned prices.
Soybeans and corn lost ground after closing higher on Wednesday.
“Supply shortfall in Northern Hemisphere is pushing buyers to go for more Australian wheat,” said Ole Houe, director of advisory services at brokerage IKON Commodities in Sydney. “But we have more lower quality wheat crop.”
The most-active wheat contract on the Chicago Board Of Trade (CBOT) Wv1 was down quarter of a cent at $7.90-1/4 a bushel by 0326 GMT.
Soybeans Sv1 lost 0.5% at $12.22 a bushel and corn Cv1 fell 0.2% to $5.70-1/4 a bushel.
Wheat markets have soared in recent weeks on the possibility of more export restrictions in the world’s top supplier Russia.
Australian farmers are on course to harvest a record 34.4 million tonnes of wheat this year, but early harvest results show more lower quality grains due to adverse weather.
Buyers are scrambling to get hold of high-quality milling wheat.
Chinese importers bought a small number of bulk soybean cargoes on Wednesday for shipment in December and January from the U.S. Gulf Coast and Brazilian ports, analysts and an export trader said.
The purchases of around three to four cargoes, or up to about 240,000 tonnes, came after a drop in prices.
Commodity funds were net buyers of CBOT wheat, corn, soybean and soymeal futures contracts on Wednesday, traders said. Funds were estimated to be net sellers of soyoil futures.
Source: Reuters (Reporting by Naveen Thukral; Editing by Subhranshu Sahu)