The U.S. Department of Agriculture is set to issue an update on global grain supplies and demand in a monthly report on Thursday.
Lower yields in Russia’s winter wheat crop, drought damage to North American spring wheat and heavy rain during the European Union harvest have raised uncertainty about availability of export supplies.
The USDA will likely “make major changes to its global wheat production estimate” to reflect a tightening of major exporters’ stocks, said Arlan Suderman, chief commodities economist for broker StoneX, in a note.
Traders on Thursday will also focus on changes to USDA’s monthly estimates for U.S. corn and soybean yields amid concerns about unfavorable dryness in certain growing areas.
The most-active CBOT wheat contract ended flat at $7.27 a bushel, following its 2.2% gain on Tuesday. CBOT soybeans rose 3-1/4 cents to $13.40 a bushel, and corn ended up 6 cents at $5.59-1/4.
Soybean futures rose for a second session on signs of accelerating export demand and spillover support from a jump in Malaysian palm oil futures, another key global oilseed market, analysts said.
The USDA, in a daily reporting system, said exporters sold 132,000 tonnes of U.S. soybeans for delivery to China during the 2021/2022 marketing year. It was the second consecutive day the agency confirmed U.S. soy sales to China, the world’s biggest importer of the oilseed. [nFWN2PI1K9 (Reporting by Tom Polansek in Chicago. Gus Trompiz in Paris and Naveen Thukral in Singapore. Editing by Amy Caren Daniel, Mark Potter and Diane Craft)
