Wheat sags on uncertain demand outlook; corn firm, soy sags

GLOBAL-GRAINS/ (UPDATE 2):GRAINS-Wheat sags on uncertain demand outlook; corn firm, soy sags

Reuters
Published12 Jun 2024, 11:46 PM IST
Wheat sags on uncertain demand outlook; corn firm, soy sags
Wheat sags on uncertain demand outlook; corn firm, soy sags

(New throughout; updates prices, adds quotes, changes byline, changes dateline from previous PARIS/SINGAPORE,)

By Julie Ingwersen

CHICAGO, June 12 (Reuters) -

U.S. wheat futures fell about 1.4% on Wednesday as worries about global export demand and rising U.S. inventories overshadowed support from a shrinking Russian wheat crop, analysts said.

Corn futures firmed while soybeans were narrowly mixed after the U.S. Department of Agriculture's monthly supply/demand reports offered few market-moving surprises.

As of 1:02 p.m. CDT (1802 GMT), Chicago Board of Trade (CBOT) July wheat was down 9-1/4 cents at $6.17-1/4 per bushel, but stayed above Tuesday's five-week low of $6.05-1/2.

CBOT July corn was up 3-3/4 cents at $4.53-1/4 a bushel while July soybeans were down 1-1/2 cents at $11.76-1/2 a bushel.

Wheat futures pared losses after the USDA

cut its forecast

of Russia's 2024-25 wheat harvest to 83 million metric tons, a three-year low, down from 88 million tons last month. The USDA projected exports from Russia, the world's top supplier, at 48 million tons, down from its May forecast of 52 million tons.

However, the USDA raised its estimate of the U.S. 2024/25 wheat crop to 1.875 billion bushels, a five-year high, from its May forecast of 1.858 billion. The government also raised its forecast of the amount of global wheat left at the end of the 2023/24 marketing year to 259.56 million metric tons, topping a range of

trade expectations

.

"We lowered the Russian crop, but the problem is, the carry-in on the world wheat numbers was increased. The bottom line is, the wheat market needs demand, or we are going to continue to grind lower," said Tom Fritz, a partner with EFG Group in Chicago.

Corn futures were modestly higher, with firm domestic cash markets supporting the nearby July contract. Farmers have been reluctant to sell stored corn at current prices, a factor that has supported cash values.

But relatively strong U.S. crop ratings for both corn and soybeans hung over the market, capping rallies.

"The world is coming to the realization that we have plenty of corn and soybeans, as long as we have a good North American crop. And right now, that crop is off to a very good start," said Jake Hanley, managing director at Teucrium Trading.

(Reporting by Julie Ingwersen; additional reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore, editing by Deepa Babington)

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First Published:12 Jun 2024, 11:46 PM IST
HomeNewsWheat sags on uncertain demand outlook; corn firm, soy sags

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