US wheat futures rose 1.8 percent on Thursday on concerns
about tightening stocks in Russia due to drought that could force the country,
one of the world's biggest wheat suppliers, to curb exports. New-crop soyabean
futures backtracked from a 2.3 percent rise on Wednesday as more rains crossed
the US Midwest crop belt, and corn prices rose on firm cash markets. At the
Chicago Board of Trade, September wheat futures settled up 15 cents at
$8.61-3/4 per bushel.
Benchmark December corn ended up 3-1/2 cents, or 0.4 percent, at $8.07-1/2 a bushel. Most-active November soyabeans fell 9-1/4 cents, or 0.6 percent, at $16.25-1/4 a bushel. Wheat futures advanced on news from Russia's SovEcon consultancy that Russian grain stocks at farms stood at 15.73 million tonnes as of Aug. 1, their lowest level since 2006. Wheat stocks fell to their lowest level since 2003 at 10.61 million tonnes. Russian grain stocks were down 18 percent year-on-year while wheat stocks were down 30 percent after the sales volume increased by 60 percent.
The data renewed worries that Russia would take steps to limit grain exports. The stocks figures followed two purchases in the past week by Egypt that traders said showed the determination of the world's largest wheat buyer to secure competitively priced Russian grain before a small export surplus runs out. "It's the same idea that it is going to lead to some kind of restriction at some point on the exports," said Dan Cekander, analyst with Newedge USA in Chicago.
Bullish technical signals added support as front-month CBOT wheat rebounded from a one-month low set on Tuesday at $8.38-1/4. "We broke out to the bottom the day before yesterday, and just getting back to the trading range probably stimulated some short-covering," Cekander said. Also supportive was dry weather in Western Australia, the country's main producing and exporting region, that could hurt the developing wheat crop there. New-crop soyabean futures were under pressure from much-needed rains in the US Midwest crop belt that could improve yield prospects for late-planted crops.
Benchmark December corn ended up 3-1/2 cents, or 0.4 percent, at $8.07-1/2 a bushel. Most-active November soyabeans fell 9-1/4 cents, or 0.6 percent, at $16.25-1/4 a bushel. Wheat futures advanced on news from Russia's SovEcon consultancy that Russian grain stocks at farms stood at 15.73 million tonnes as of Aug. 1, their lowest level since 2006. Wheat stocks fell to their lowest level since 2003 at 10.61 million tonnes. Russian grain stocks were down 18 percent year-on-year while wheat stocks were down 30 percent after the sales volume increased by 60 percent.
The data renewed worries that Russia would take steps to limit grain exports. The stocks figures followed two purchases in the past week by Egypt that traders said showed the determination of the world's largest wheat buyer to secure competitively priced Russian grain before a small export surplus runs out. "It's the same idea that it is going to lead to some kind of restriction at some point on the exports," said Dan Cekander, analyst with Newedge USA in Chicago.
Bullish technical signals added support as front-month CBOT wheat rebounded from a one-month low set on Tuesday at $8.38-1/4. "We broke out to the bottom the day before yesterday, and just getting back to the trading range probably stimulated some short-covering," Cekander said. Also supportive was dry weather in Western Australia, the country's main producing and exporting region, that could hurt the developing wheat crop there. New-crop soyabean futures were under pressure from much-needed rains in the US Midwest crop belt that could improve yield prospects for late-planted crops.
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