Wheat futures firm on weather concerns

CHICAGO WHEAT FUTURES ROSE FOR THE FIRST TIME IN THREE SESSIONS FOLLOWING concerns over adverse weather conditions in key exporting countries, although gains were limited following an extension of a Black Sea export deal.

The most-active wheat contract on the Chicago Board of Trade (CBOT) advanced 0.7 percent to $8.12 a bushel, but the market lost 0.2 percent for the week.

The Black Sea deal, aimed at easing global food shortages by helping Ukraine export its agricultural products from Black Sea ports, was extended for four months on Thursday, though Russia said its own demands were yet to be fully addressed. The agreement, initially reached in July, created a protected transit corridor and was designed to alleviate shortages by allowing exports to resume from three ports in Ukraine, a major producer of grains and oilseeds.However, concerns over adverse weather in key exporting countries continued to support prices.

Market dealers said the extension of the Black Sea deal is going to add pressure on prices but supplies are set to remain tight in the coming months due to reports of dryness in U.S. Plains and Argentina.

Meanwhile, the International Grains Council trimmed its forecast for 2022/23 global wheat production by one million tonnes to 791 million tonnes.

For other grains, corn and soybeans recorded higher valuations. Corn gained 0.5 percent to $6.701/2 a bushel and soybeans rose 0.3 percent at $14.20-1/2 a bushel. For the week, corn is up 1.9 percent, but soybeans lost around 2 percent.

Concerns over poor weather in key exporting countries continued to support prices for soybean as Argentina farmers said they could reduce the area they plant with soy if more rain does not bring relief to drought-plagued farmlands soon. This was further reiterated by the Buenos Aires grains exchange as it forecast moderate showers in parts of the country’s farm belt.

According to the exchange’s report, prolonged drought has forced farmers to delay planting soy, which is only 12 percent complete, compared to 29 percent at the same date last year.