Expected price increases in Russia due to weather affecting crops, with corn slightly down and the soybean market remaining stable before the USDA report.
CBOT wheat futures rose on Wednesday, continuing the strong momentum from the previous trading day, as expectations of more weather damage to Russian crops pushed up prices.
CBOT corn edged down slightly, while CBOT soybeans remained steady ahead of the USDA report.
Fundamental situation
CBO wheat July contract rose 0.1% to $6.27 per bushel, following a more than 3% rise on Tuesday. CBOT soybean July contract held steady at $11.78 per bushel, while CBOT corn July contract fell 0.1% to $4.49-1/4 per bushel.
On Tuesday, the head of the Russian Grain Union said that frost had damaged 15% to 30% of winter crops in Russia, a figure much higher than the estimate of the Russian Ministry of Agriculture, leading to a rise in wheat prices.
In addition to frost damage in Russia, unexpected declines in weekly growth condition ratings for US winter and spring wheat also supported prices.
Egypt ordered 400,000 tons of Black Sea wheat in an international tender.
Traders adjusted their positions ahead of the monthly USDA supply and demand report.
Analysts predict that the USDA will raise its forecast of US soybean ending stocks for 2023/24 and 2024/25, and lower its forecast of corn ending stocks.
US corn and soybean crops got off to a strong start. In the crop progress report released early Tuesday, 74% of US corn crops were rated "good to excellent", down 1 percentage point from last week but still the highest level for the same period since 2020.
In the first rating of oilseeds for 2024 by the USDA, 72% of US soybeans were rated "good to excellent", in line with market expectations.
Traders said commodity funds bought CBOT wheat and soybean oil futures contracts on Tuesday, while selling CBOT soybean, soybean meal and corn futures contracts.
(The above analysis is from the perspective of Reuters analysts)